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View Full Version : Securing seed funding in a developing country



wirate
January 22nd, 2013, 05:10 PM
I think I have a brilliant idea to start a venture. I have a team and we think we can make it big. The problem is that we are from a developing country where securing seed funding is not easy. Investors don't trust anyone with an idea because, most likely, they will just take the money and do nothing or take the money and disappear. So people I have talked to, suggest that I first build the project and show it working and then expect funding to promote and host it. However, building the project is a long and expensive task and we can't do it without funds. That's a dead end for us.

So, do you have any suggestions for us? We need bread for the time we spend on the project. We expect it to take 8 months.

coldcritter64
January 22nd, 2013, 05:21 PM
Crowdfunding may be a possibility, further info,
http://www.indiegogo.com/learn-how-to-raise-money-for-a-campaign

Mikeb85
January 22nd, 2013, 06:17 PM
Most investors want to see something working before they invest their money. You don't need a finished product, but you definitely need a working prototype before most will invest.

Does your country have any sort of business development bank that could offer a loan?

wirate
January 22nd, 2013, 09:01 PM
Most investors want to see something working before they invest their money. You don't need a finished product, but you definitely need a working prototype before most will invest.

Does your country have any sort of business development bank that could offer a loan?

A loan is one option. We could get it. It increases risk factor on our side but I guess we'll have to do that. The loan would be fairly small.

One way could be to convince friends for a small amount of money to build a prototype. Does building a prototype dramatically improve our chances of securing funding?

dannyboy79
January 22nd, 2013, 09:04 PM
have you checked out kickstarter?

Mikeb85
January 22nd, 2013, 09:36 PM
A loan is one option. We could get it. It increases risk factor on our side but I guess we'll have to do that. The loan would be fairly small.

One way could be to convince friends for a small amount of money to build a prototype. Does building a prototype dramatically improve our chances of securing funding?

Yes. Very much so.

Most start-ups around here (Canada and US) start without funding until they have a working prototype or even a basic product. I agree, loans are risky, but they're a way to secure capital if you absolutely need it and can't get investors.

Paqman
January 22nd, 2013, 09:51 PM
Does building a prototype dramatically improve our chances of securing funding?

Yes, because by the time you're ready to prototype you should be pretty well advanced down the design process.

Don't just knock up a prototype just to show investors if it's not likely to be close to the final product. By the prototype stage you should just be tweaking and refining things, major changes should be out of the question.

wirate
January 26th, 2013, 02:30 PM
Thanks for the support everyone. I am talking to a friend for the money to build a prototype. We will give him a small amount of equity for that. Once a solid prototype is here, we'll go for a bigger actual seed round. Thanks :)