Thursday, March 17, 2022

Top startup app creator mistakes

 

Mistake #1. Run on your


How much romance in the word Bootstraping ... And I'll tell you how much. Exactly zero romance in this word. But not zero goes to salaries, contributions and other operating expenses. I started making a product with my hard-earned money. And it hurt.


Do research and the first version yourself, without using your savings. Check demand. Make a pitch deck and sell yourself for a little "expensive" money to the first investors. You know them: your grandmother, friends, family, colleagues, ex-boss, business angel start-up.


At an early stage, try to invest as little money as possible in the product and as much as possible in confirming demand for it.


Collect first pre-orders, interviews, corridor tests, and ideally first sales. Rely not on the “beautifulness” of the product and idea, but on the data. You will kill two birds with one stone: complete the first chapter of the Lean startup book and get that magical Traction that all investors crave to see. You will still need your money in order to pay your own salary and pay for the services of a psychotherapist. Do not rush to pour them into the product.

Pre-IPO for a startup: idea, advantage, prospects

What is a pre-IPO?

Pre-IPO in its essence is a conditional concept, which was introduced into everyday life quite recently. We know that in classical venture terminology there are private funding rounds seed, A, B, etc. In practice, it so happened that around the D round, companies no longer attract private financing, but enter the exchange market (IPO). Just this time period in the development of the company, between the last round of private financing and IPO, is commonly called pre-IPO.


Is a pre-IPO a type of direct investment?

The issue is debatable, as there are several ways to acquire pre-IPO shares.

As we have already said, pre-IPO is rather not a regulated concept, but a conditional period in the development of a company, when investors have the opportunity to invest in its shares directly during the company's last pre-IPO round of private financing or by buying a share from current holders, company employees to increase of their investments due to the growth of the company's capitalization at the IPO.


Let's say a company goes IPO for $50 per share, and you buy it now for $25, when large brokers and investment houses have not started selling this deal to their clients. This is a discount that will protect capital if something goes wrong and provide additional profit if everything goes well.

Top startup app creator mistakes

  Mistake #1. Run on your How much romance in the word Bootstraping ... And I'll tell you how much. Exactly zero romance in this word. B...