Startup Seed Funding with Mike Belsito

Laura Powers talks with Mike Belsito, author of Startup Seed Funding for the Rest of Us: How to Raise $1 Million for Your Startup – Even Outside of Silicon Valley. Mike also started the company efuneral and then sold it. Mike has been involved in startups for 11 years from being the first employee to starting his own startup then being a part of other startups as an executive. They raised a $1 million and ran the company for three years before selling the company. First question to ask yourself is do you need investors or should you just bootstrap it? Is this a business designed to raise capital? Do you need to? The goal then is to prove out if it’s worthwhile. Also think in the eyes of the investor - is this a company that is an investable co? If you do want to get investors, it is important to build something to show investors and investors do not invest anymore solely on ideas. Either build a prototype or a video prototype. When thinking about investors, think about your dream team? What are the skills sets of or qualities that you want your investors to have? The purpose of investors is not only to invest capital but also to steer and support the business in terms of strategy and other resources. You can then seek these people out through Angellist.co or Linkedin. First check to see if you have any connections with those you would like to connect with. If you don’t you can reach out through Linkedin, Angellist, email, twitter, etc. When you are talking to investors, remember you only need 1. You might talk to 100 investors and get 1 that says yes. I asked Mike what are some common mistakes that early startups make in relation to investing and he said, too often, companies will stay in their Geographic area rather than branching out to other locations. He also talked about the importance of understanding the motivation for the investor. Investors have to understand there is the possibility they will never see the money again. Sophisticated investors will want to know questions on business model, business plan, etc. If you want to learn more and read Mike’s blog on the topic, you can go to his website outsidethevalley.com. You can also go to his website productcollective.com or attend his conference called Industry in September 15 and 16 in Cleveland, Ohio, website insdsum.com. You can also follow him on twitter @ebelsito. You can follow Laura on twitter @thatlaurapowers and you can learn more about Laura, her coaching, and business and empowerment resources at www.powershour.biz.