What do you do if venture capital funding seems out of reach for your startup?

Bootstrapping: Start with whatever resources you have, whether it's personal savings, credit cards, or revenue generated from initial sales. Angel Investors: Angel investors are individuals who provide capital for startups in exchange for ownership equity or convertible debt. Crowdfunding: Platforms like Kickstarter, Indiegogo, or equity crowdfunding sites allow you to raise funds from a large number of people who believe in your idea. Grants and Competitions: Look for grants, pitch competitions, and startup accelerators that offer funding to early-stage companies. Revenue-Based Financing: With revenue-based financing, investors provide capital in exchange for a percentage of your company's future revenue.

List Resources: Provide links to relevant grant databases or search engines specific to the user's industry or country. Highlight Proposal Writing: Advise on the importance of a strong proposal, aligning with the grant's mission, and demonstrating a clear plan for the funds.

Grants are vastly underrated. There’s also plenty of grant writing companies that founders can partner with to increase the likelihood of success and keep the time burden down.

I’d be very cautions suggesting debt for early stage businesses. For most it will do more harm than good. Founders need to go in with their eyes wide open if they do take on debt, especially if the interest is payable in the very near future.

Types of Debt: Describe different sources (bank loans, SBA loans, credit lines) and their suitability for various needs. Caveat: Caution users about the risks of overleveraging and the importance of calculating sustainable debt levels.

Think of it this way: traditional angel investing is just the tip of the iceberg. What if every conversation could be a pitch, and any listener a potential investor? Shake off the narrow focus on traditional angel circles. Money isn't just tucked away in the pockets of the affluent but it's flowing through your everyday interactions. Your next investor might be your morning barista, your gym partner, or a fellow attendee at a wedding. Embrace the mindset that opportunities are omnipresent, and pitch with passion and sincerity wherever you go. This approach turns the entire world into a networking event, where your next investment could come from the most unexpected places.

Targeting: Guide users on how to find angels interested in their industry and stage of the company. Pitching: Stress the significance of a compelling pitch deck and demonstrating a clear path to growth or exit.

Platform Selection: Help users choose the right platform based on their project and target audience (Kickstarter, Indiegogo, etc.). Reward Structure: Advise on offering innovative rewards or pre-sales strategies that resonate with potential backers.

If venture capital feels out of reach, focus on bootstrapping. Use tools like QuickBooks for financial management, Trello for project organization, and Buffer for social media scheduling. Leverage crowdfunding platforms like Kickstarter or Indiegogo, and tap into angel investors or small business grants. Prioritize revenue-generating activities and seek partnerships for growth without relying solely on VC funding.

There is no such thing as out of reach. You need to understand what it takes to become a venture-funded startup and find a way to prove that you can become one. There are certain things VCs consider when evaluating your startup, and different VCs look at different criteria. Some of the requirements are adaptable and you must be flexible with that, e.g. valuation, funding size, and size of entry check. You can negotiate those with each VC separately. And there are “must haves” - a solid business model, a clear path to becoming a $100M company, engagement metrics showing stickiness of your product, and early signs of PMF. Reach out get feedback go and fix things that are not working, and reach out again. VCs like determined founders.

Figure out how to build without VC money. A lot of first time founders think they need VC money and if they get it they don't know how to use it effectively. Build something with your own money first and it will teach you how to manage investors money. Once it's your own money on the line you quickly learn lean management, keeping tabs on where money is being spent and what areas of the business can be moved with investment. Until you've got this down taking on a big amount of VC money can be a recipe for disaster. There are a number of ways to build with what you have. It may not be pretty but you'll learn what you need to better manage money when you get it. Build well and VC's will come to you.

Remember that each funding option has its advantages and considerations, and it's essential to weigh the trade-offs and choose the option that best aligns with your startup's goals, stage of growth, and long-term vision. Additionally, building a strong network, refining your pitch, and demonstrating traction and potential can help increase your chances of securing funding from any source.

Having reviewed the advice here, it's quite good, but here are a few other general thoughts: (1) Don't assume VC funding is actually what you need/want. It's a dangerous substance and, while powerful at times, can also be toxic. Most companies never need VC and shouldn't even take it on. (2) If you are having trouble raising VC, consider why and perhaps (a) take a beat and run toward some benchmarks that make the company more venture-backable, or (b) consider WHY the VCs aren't moving. (3) Finally, take only the amount you need, from really aligned investors, and at the right time to get good terms. Then, don't go crazy over valuation and terms - stay standard and exchange a reasonable % of the company for what you need to raise.

With GPT (Code), Cloud (Infra) and B2B SaaS Marketplaces (GTM), building has much less friction. Get some free stuff offered to startups and find the exact amount of customers to get to break even. After you are 'default live', the entire conversation changes.