Question

You have a brilliant business idea which potentially can create the next ‘Facebook’. However, the initial investment amount is way beyond what you can afford. What would be your financing strategy to kick start the new business?

Answer 1

My financing strategy would be as follows :

• Raise an initial amount from family and friends. This will be adequate to get the initial product running, testing and provide a proof of concept.
• After the proof of concept is obtained, approach angel investors for funding. This funding will enable hiring of early employees, initial marketing and infrastructure.
• Once the operations are running, approach venture capitalists. This will be a sizeable amount, and will enable scaling and expansion.