How to secure funding for your project? It’s one thing to have a great idea. Another thing is to convince others.
The challenge is to bring in the movers and shakers to support your idea.
Many start-ups radiate great ideas and knowledge of how to run a business. But it’s safe to say that not all teams have sound technical knowledge. When prompted on how they’ll develop their MVP or who had already built the existing software, the de-facto answer is a ‘friend, family member, or freelancer.’
And that’s absolutely fine!
But have you considered scaling the product? Have you thought about what’s next for your next big idea?
How to Secure Funding: It’s Your Choice
I noticed that people all seem to take a very familiar route when looking to manifest their game-changing ideas. You will probably think about another freelancer and growing the team ‘piecemeal’.
That’s logical. At the point, you’ll need a CTO. They have the technical know-how to manage a team of developers and help to ensure clean code. Once this happens, you will want to scale the business. That’s when you’ll face a common choice: keep the team in-house or hire more people remotely.
Questions immediately arise:
- Can I trust them?
- How can I ensure value?
In my experience, large software houses provide safety and security in safeguarding a superbly-executed IT project. Jacek Zadrąg, COO at SoftwareHut, talks about how safe is IT outsourcing in his detailed article.
Help Solve the Investors’ Dilemma
Venture capital firms are not investing in your idea because of non-technical co-founders.
Any reputed venture capital firm is guaranteed to have dedicated teams, whose sole purpose is to pick apart and scrutinise the potential of start-ups from a technological standpoint.
That kind of absence is a red flag for VCs and investors who need to conduct a thorough assessment of your idea’s growth potential.
Nine out of ten start-ups are technologically-minded. That’s why, any reputed venture capital firm is guaranteed to have dedicated teams, whose sole purpose is to pick apart and scrutinise the potential of start-ups from a technological standpoint. It’s at the mercy of these teams that start-ups receive their 6-month kickstart.
With this news in mind, now you must step up to build your unicorn, and as the founder decide what team do you want:
- A team of freelancers
- An in-house team
- Software house
In any start-up, you will face this question. Understandably, this is new territory. Thankfully, I can help you to evaluate the differences between in-house and outsourced IT development. There, you can be sure to decide which is the better option to suit your business.
Bill Gross gave a brilliant TEDx talk, outlining his unique recipe for company success. The founder of Idealab – a technology start-up incubator – pointed out something that even the most experienced marketers and founders seem to overlook: timing.
His research, based on experience in technology, automation, software, and renewable energy, provides shocking testimony to something simple, yet decisive for many companies.
Surprisingly, companies succeeding had placed ‘timing’ as their number one on their list of priorities — the same companies listed talented teams in position two.
It may come as a surprise, even if your idea may be earth-shattering. But that’s not enough. The key is in the timing. Just because you’re ready, doesn’t mean the market is. Sadly, you have little control over market sentiment, it’s bigger than you, me, or any prospective start-up.
But you do have control over your team, as you can learn to maximise remote teams’ effectiveness resulting in a well-rounded project.
I asked VC representatives during a meeting in New York, how they evaluate a start up’s technological deliverability to-market, and what team structure matters most in their opinion.
The answer rang with consensus on three key points:
- Co-Founders with a technology background
- CTO who’s a co-founder
- Start-up backed by a professional software house
That’s because a large, well-known software house is a credential unto itself. Firstly, from a competence point-of-view, a vetted team of top talent provides the necessary assurance as to the quality of any potential project. Sizable companies will also notably boast the flexibility and resources to play a decisive role in your next stage development in under 15 days.
Ultimately, by merit of the reputation and portfolio of the software house, this cooperation would bring about a general impression of value and sustainability. Start-ups working with software houses provide a breath of much-needed fresh air to potential investors.
These people need reasons to say yes to your idea. So, demonstrating a project’s professional backing is a step closer to relaxing those holding the purse strings.
Such a solution is golden. It provides transparency into who is working on your project, with the flexibility of setting a fixed budget, and access to resources without the need for engaging an entire HR department is a valuable option. That’s especially the case when all of this comes from one place.
That place is for you to decide, of course. Some companies rely on distant destinations from once-traditional IT hubs around the world. Increasingly, companies select closer destinations with familiar cultural and linguistic territory. Whether you choose nearshoring vs offshoring IT outsourcing, you can be sure to learn to maximise the potentials of either option.
Start-ups opt for in-house talent, or freelancers to ensure their projects will scale. However, when funding is involved, this can matter little. Without the backing of a professional team in a reputed company, projects can struggle to attract the attention they deserve.
With this solution, this may entail a remote working arrangement. However, as I can prove, trustworthy software houses should be able to demonstrate their ability to deliver, even in the absence of face-to-face methods.
Working with teams in such an arrangement is an increasingly common practice. Following remote teams best practices will help you capitalise on these working arrangements.
I can confirm that the right software house can wield the necessary resources and prestige to help build a project quickly and reliably. Most importantly, for the idea to thrive, the principal challenge is to provide much-needed reputability. Ultimately, that’s what is needed to secure funding for new projects.
Venture capital firms fixate on extracting value and sustainability in start-ups’ growth potential – it’s not enough to pitch a brilliant idea. They look for reasons to support your project but remember they are well-trained to resist it too. By sourcing from a specialised team from a reputed global software house, you are demonstrating sure-footing that will be sure to gather investors’ attention.