Disclaimer: Please bear in mind that the content presented here reflects solely personal opinions and classifications based on individual experiences. It's important to acknowledge that there may be multiple perspectives on the matter at hand.

The relationship between Warren Buffett and Bill Gates began in 1991, when Bill Gates, the founder of Microsoft, reached out to Warren Buffett, the legendary investor and CEO of Berkshire Hathaway, for advice on how to invest his rapidly growing fortune.

At the time, Buffett was already an accomplished investor and businessman, known for his smart investment strategy and his ability to spot undervalued companies. Gates, on the other hand, was a young and ambitious entrepreneur who had built one of the most successful technology companies in the world.

Buffett was impressed by Gates' intelligence and drive and agreed to take him under his wing as a mentee. Over the years, the two formed a close relationship, with Buffett providing Gates with valuable advice and guidance on how to invest his money and grow his wealth.

As their relationship evolved, Buffett and Gates began to work together more closely, with Buffett providing strategic guidance to Microsoft as the company navigated the rapidly changing technology landscape. They also began to collaborate on philanthropic endeavors, with Gates and Buffett joining forces to create the Giving Pledge, a campaign that encourages billionaires to give away a significant portion of their wealth to charity.

Today, the mentor-mentee relationship between Buffett and Gates is one of the most well-known and respected in the business world. The two continue to work together on a variety of projects and initiatives, and their friendship and partnership have had a lasting impact on the world of business and philanthropy.

The mentor for a Startup is an experienced individual who provides guidance, advice, and support to the entrepreneur or founding team of a startup company. A mentor can provide valuable insights and connections, helping the startup navigate the challenges of building and growing a business. Mentors often have experience in the industry or field in which the Startup operates and can provide valuable advice on topics such as strategy, fundraising, and building a team.

Startups should carefully select mentors who possess several key characteristics:

: A good mentor brings a wealth of experience and expertise to the table, offering invaluable guidance on navigating the industry, avoiding common pitfalls, and making strategic decisions.

: Effective mentors often has extensive networks, facilitating introductions to potential investors, customers, and partners. This opens doors for startups to access resources and opportunities that might otherwise be challenging to obtain.

: Quality mentors offer an unbiased viewpoint on the business and its strategies. They excel at identifying blind spots and areas for improvement, providing insights that founders may struggle to perceive independently.

: Launching a business can be arduous and stressful. Mentors play a crucial role in providing motivation and support to founders and team members, helping them remain focused and resilient through challenging times.

: Mentors aid startups in saving both time and money by offering guidance on efficient business practices and steering them away from costly mistakes. Their expertise can streamline operations and optimize resource allocation, contributing to the startup's success.

Having reliable mentors can be a pivotal asset for startups, offering the necessary guidance and assistance to navigate the complexities of launching and scaling a business.

There are several key personality traits commonly associated with effective mentors:

: A mentor's integrity encompasses honesty, ethics, and trustworthiness in all interactions. This involves respecting confidentiality, avoiding exploitation of trust, and being forthright about their own capabilities and limitations. An integrity-driven mentor prioritizes the mentee's best interests and adheres to ethical standards consistent with the startup's values.

: Successful mentors exhibit patience, taking the time to actively listen to and guide their mentees through challenges.

: Effective mentors demonstrate empathy, understanding, and empathy towards their mentees' obstacles and hardships.

: Valuable mentors are generous with their time and knowledge, sharing their expertise and experiences openly with their mentees.

: Competent mentors possess substantial experience in their respective fields, enabling them to offer insightful advice and direction.

: Supportive mentors provide encouragement, motivation, and a sense of camaraderie to their mentees.

: A good mentor empowers mentees to take initiative and think autonomously.

: Reliable mentors make themselves accessible and approachable, offering ongoing support and guidance as needed.

Embarking on a mentorship journey can be a transformative experience for startups, offering invaluable guidance and support as they navigate the complexities of entrepreneurship. However, to make the most out of this relationship, it's crucial to approach it with clarity, intentionality, and openness.

Here are some essential steps to consider when engaging with a mentor:

: Before engaging with a mentor, it's important to have a clear understanding of what you hope to achieve through the mentorship. This will help you communicate your needs to your mentor and ensure that their advice is tailored to your specific situation.

: Look for mentors who have experience and expertise in areas that are relevant to your startup. They should also have a track record of success and be willing to invest time and energy in your business.

: Maintaining regular communication with your mentor will help ensure that they stay engaged and invested in your startup's progress.

: Your mentor is there to offer guidance and advice, so it's important to be open to their feedback and be willing to make changes to your business based on their suggestions.

: A good mentor will be able to share valuable insights and lessons learned from their own experiences. Be willing to take their advice and learn from their successes and failures.

: Make sure to thank your mentor for their time and advice. Showing appreciation can also help build strong relationships and increase the chances that your mentor will continue to support your business in the future

Have you ever wondered, why mentors are walking away from you?

Mentors are often busy with their own businesses and personal lives, but they are willing to donate their time and effort to help others succeed. Here are some etiquette tips of you to follow before, during, and after a mentoring session to make sure that you did your part in maintaining good relationship with your mentor:

: Before the mentoring session, make sure to have a clear agenda and specific questions to ask your mentor. This will ensure that you make the most of your time together.

: Mentors are busy individuals who are donating their time to help startups. Show your appreciation for their time and expertise by being punctual, attentive, and respectful.

: Share your true situation, challenges and opportunities of your startup, and be open to constructive criticism.

: Be specific about the type of help and support you are looking for from your mentor. This will help them understand how they can best support you.

: After the mentoring session, be sure to follow up with your mentor and let them know how their advice and support have impacted your startup.

: Show your gratitude and appreciation for your mentor's time and guidance. A simple thank-you note or a small gift can go a long way in building a lasting relationship.

: Respect the confidential information that your mentor might share with you and avoid sharing it with others without permission.

: Be open to feedback and be willing to make changes based on the mentor's advice. Remember, your mentor's goal is to help you succeed.

Why startup cofounders need mentor(s)

Founded in 1972, Sequoia Capital has established itself as one of the leading venture capital firms globally. Over the years, it has made numerous successful investments in technology companies that have become industry giants.

One of Sequoia's most notable investments was its early backing of companies like Apple, Google, PayPal, and Airbnb. These investments have yielded significant returns and contributed to Sequoia's reputation as a top-tier venture capital firm with Assets Under Management of $85B as per Dec. 31, 2023.

An investor in the life of an early-stage startup is a person or an organization that provides capital to the early-stage business in exchange for equity or debt. There exist various avenues through which startups can secure investment, each catering to different needs and preferences.

Types of investors/financing instruments commonly found in the startup ecosystem:

Bootstrapping, also known as self-funding:

starting and growing a business using personal savings and revenue generated by the business itself. This approach allows startups to maintain control and avoid diluting equity.

: individuals who personally know the entrepreneur and are willing to invest in their venture. This type of investment is often characterized by personal relationships and trust.

: affluent individuals who invest their own capital into startups in exchange for equity. They play a crucial role in providing early-stage funding and mentorship to entrepreneurs.

firms are professional investment entities that provide capital to startups in exchange for equity. They typically invest larger sums of money and often take an active role in guiding the company's growth.

: manage the wealth of affluent families and may invest in startups as part of their portfolio. These entities offer strategic investment opportunities and often have a long-term investment horizon.

allow a large number of individuals to invest small amounts of money in startups. This democratized approach to fundraising has enabled many entrepreneurs to access capital from a diverse pool of investors.

: firms provide loans or other debt instruments to startups, allowing them to access capital while avoiding equity dilution. This type of financing is suitable for startups with predictable cash flows or tangible assets.


The right investor can bring a wealth of resources and expertise to the table, which can have a significant impact on the success of the startup. Therefore, it's crucial for startups to carefully consider and evaluate the characteristics of potential investors. The same way investors do their due diligence on startups, startups should do the same with potential investors. One way to validate the quality of an investor is to reach out to their portfolio companies, co-investors, and even their limited partners to gather insights.

Some of the common characteristics of a possibly good investor:

It is very important to look thoroughly at the investor's existing portfolio results as well as their feedback about the investor support.

you need to understand how ready is the investor you're talking to. Sometimes, investors are so eager to join a certain round while they are financially not ready. The startup needs to bother to check on this.

: The investor should have a clear understanding of the startup's goals and vision, and align their own interests with those of the startup.

The investor should have a deep understanding of the industry in which the startup operates, and the ability to provide valuable insights and advice.

The investor should have a strong network of contacts and relationships that can benefit the startup. It could be in different shapes such as mentors, service providers, or co-investors.

The investor should be actively involved in the startup and provide support and guidance in areas such as strategy, operations, and fundraising.

The investor should have a strong financial background and be able to provide financial advice and guidance.

The investor should be patient and understand that startups typically require a long-term investment horizon.

When it comes to catching the eye of investors, it's about more than just a polished pitch deck or a team with impressive credentials. Investors look for startups that demonstrate a deep understanding of the market, a solid business strategy, and the capability to execute effectively.

Seven factors that can enhance a startups appeal to investors:

Clear Positive Impact within Investor's Scope:

Investors are increasingly focused on backing ventures that align with their values and impact objectives. Startups that can showcase a positive impact within the investor's impact scope are more likely to attract interest and support.

Investors place significant emphasis on the strength and capability of the founding team. A team with a track record of success, relevant expertise, and complementary skills is seen as a valuable asset by investors.

Defensibility Stance with Monopolistic Potential:

Startups that possess a defensible position in the market, with the potential to achieve near-monopolistic status, are particularly attractive to investors. This defensibility can come from various sources, such as proprietary technology, unique intellectual property, or strong network effects.

Investors seek startups operating in markets that are ripe for disruption. Industries facing inefficiencies, outdated practices, or significant unmet needs present opportunities for innovative solutions to thrive and attract investor interest.

Sustainable and scalable unit economics are essential for demonstrating the long-term viability and profitability of a startup. Investors look for startups that can efficiently acquire customers, generate revenue, and achieve positive margins.

Startups that have diversified revenue streams spanning across borders demonstrate resilience and potential for growth. Investors value startups with clear strategies for tapping into international markets and capitalizing on global opportunities.

Investors are interested in startups with a clear path to exit, whether through acquisition, initial public offering (IPO), or other liquidity events. A well-defined exit strategy provides investors with confidence in the potential for future returns on their investment.

What startup should consider when fundraise from investors

Please bear in mind that the content presented here reflects solely personal opinions and classifications based on individual experiences. It's important to acknowledge that there may be multiple perspectives on the matter at hand.

Most founders I've encountered experience varying levels of stress in their lives. For solo founders, this stress can be even more profound. That's why we consistently recommend that talented solo founders in the initial stages seek out a compatible co-founder.

A co-founder is an individual who collaborates in establishing and managing a startup company alongside one or more partners. They often occupy critical positions within the company, such as CEO, CTO, or COO, and play a pivotal role in its strategic decision-making process.

Having a co-founder early in a startup can have several functional and psychological benefits. In fact, having a co-founder can provide a strong support system, sharing not only the workload but also the inherent risks and uncertainties that come with any new venture. This shared experience fosters emotional support and motivation, especially during challenging times. Furthermore, a co-founder brings a different perspective to the table, which can spark creative solutions and help mitigate feelings of isolation and burnout. Ultimately, having a co-founder fosters a sense of accountability and shared ownership, motivating both partners to work harder and achieve the startup’s goals.

In the process of validating a startup idea, persuading a high-caliber individual to join as a co-founder is a critical step in what we refer to as the “validation circle.” This concept will be explored further in an upcoming article.

While finding a co-founder can be a huge asset, choosing the wrong one can have serious consequences. Differences in vision, values, or work style can easily lead to conflicts and tension within the startup. This can be detrimental not only to the company’s success but also to the mental well-being of the co-founders themselves. Additionally, mismatched expectations around roles, compensation, and equity can be a recipe for disagreements and further tension. To prevent these issues, open and honest communication from the outset is crucial. Establishing clear roles, expectations, and agreements early on can help ensure everyone is on the same page and working towards the same goals.

When would be the right time to bring in a co-founder?

Once you have a clear vision for your startup and a solid understanding of the skills and expertise needed for success, you can begin to identify the ideal co-founder profile. For example, if your startup focuses on a new technology, a co-founder with a strong engineering or software development background becomes essential to bring your product to market. I would say the best time to find a co-founder is after completing the validation circle in the idea phase; you’ll have a much clearer understanding of your startup’s needs. This solidified vision will help you identify the ideal co-founder with complementary skills – someone who fills the gaps in your expertise, whether that's marketing, finance, or operations. Building a founding team with diverse strengths is a powerful way to mitigate risk and propel your startup toward success.

As mentioned, picking a good co-founder for your startup is an important decision that can have a significant impact on the success of your business. Here are some tips on how to pick a good co-founder:

Look for candidates with complementing skills:

Choose a co-founder with skills and experience that complement your own. This can help fill gaps in your skill set and make your team more well-rounded.

Choose a co-founder who shares your passion for the business and your vision for the future. This will help ensure that you are both working towards the same goal.

Choose a co-founder with whom you have preliminary trust (or more) and who you believe will act with integrity. Trust is essential in any business partnership.

Look for a co-founder who is a good communicator, both in terms of being able to express themselves clearly and being able to listen and consider other people's perspectives.

Choose a co-founder who shares your values and work ethic. This can help ensure that you are both on the same page regarding the direction of the business and how to achieve your goals.

Clearly define the roles and responsibilities of each co-founder together and make sure that all parties are comfortable with their assigned roles.

Before making a final decision, work together on a small project or task. This will give you a sense of how well you work together.

Dividing equity among co-founders can pose challenges due to the need to assess the comparative worth of each co-founder's input to the startup. Maintaining transparent communication with co-founders is vital, facilitating collaborative efforts to devise an equitable equity distribution. Seeking guidance from a knowledgeable mentor, preferably a successful entrepreneur who shares a positive relationship with his/her co-founder, is advisable. This ensures that the equity allocation is fair for all stakeholders. Factors that may be considered when determining equity splits could include the following (or more):

Here are some key factors to consider when determining equity splits:

A co-founder who joined at the idea stage and has been working full-time will likely have a larger stake than someone who joined later or works part-time. The amount of time and effort invested should be a major factor. Put a $ value for who came first.

It is a good practice to take time spent on the venture as one of the KPIs when calculating the cofounder share. Put down a $ value for this.

The specific skills and knowledge each co-founder brings to the table are crucial. For example, if your startup hinges on a new technology, an engineering or software development background might be more valuable than marketing expertise at this stage, or the opposite might be true! Put a $ value for this.

If a co-founder has developed or contributed patents or other intellectual property, they may be entitled to a larger equity stake than a co-founder who has not. Put a $ value for this.

Relevant industry experience can be a significant asset, potentially justifying a larger stake. Put a $ value for this.

If a co-founder contributes a significant amount of capital to the startup, they may be entitled to a larger equity stake. This is already in $!

By considering these factors, you can arrive at a more quantified assessment of each co-founder's contribution. This will provide a clearer basis for negotiating an equitable split. Remember, equity splits can be flexible and adjusted over time to reflect changes in contributions. It's essential to document the agreed-upon equity split in a written agreement and review it periodically. This ensures the split continues to reflect the value each co-founder brings.

Finally, while agreeing on the equity split based on discussed factors is a positive step, it doesn't ensure the commitment of cofounders. Therefore, implementing a vesting schedule is essential to determine when each cofounder's equity will be fully owned. This schedule outlines the timeline for the gradual acquisition of shares by cofounders. It's important to establish clear conditions regarding the violation of time, financial, and effort commitments to avoid potential conflicts. Sometimes, cofounders may fail to fulfill their promises to join due to various reasons. In extreme cases, they may only decide to join after significant fundraising, demanding excessive salaries, which could be unfair unless agreed upon beforehand.

Here are 10 examples of famous startups that vary between product-based and service-based startups to illustrate how the equity split is done in the very early stage of the startup. Note that this changes over time due to several factors:

Uber: Travis Kalanick and Garrett Camp - 50/50 equity ratio - Service Based

Airbnb: Brian Chesky, Joe Gebbia, and Nathan Blecharczyk - 33.33/33.33/33.33 equity ratio - Service Based

Dropbox: Drew Houston and Arash Ferdowsi - 50/50 equity ratio - Product Based

Slack: Stewart Butterfield, Eric Costello, Cal Henderson, and Serguei Mourachov - 25/25/25/25 equity ratio - Product Based

SpaceX: Elon Musk - 100% equity ratio - Product Based

Instagram: Kevin Systrom and Mike Krieger - 50/50 equity ratio - Product Based

Snapchat: Evan Spiegel, Bobby Murphy, and Reggie Brown - 30/30/40 equity ratio - Product Based

Spotify: Daniel Ek and Martin Lorentzon - 50/50 equity ratio - Service Based

WeWork: Adam Neumann and Miguel McKelvey - 50/50 equity ratio - Service Based

Tesla: Elon Musk, JB Straubel, Martin Eberhard, and Marc Tarpenning - 33.33/33.33/16.66/16.66 equity ratio - Product Based.

Selecting the right co-founder and how to make an agreement

Please bear in mind that the content presented here reflects solely personal opinions and classifications based on individual experiences. It is important to acknowledge that there may be multiple perspectives on the matter at hand.

Starting a business can be a scary journey, but with the right support and resources, it can be a rewarding and fulfilling experience. One of the key factors in building and scaling a successful startup is thinking about each of the key players affecting your startup early on. You may call them "The Startup Ecosystem"

Key players include co-founders, customers, mentors, investors, service providers, and ecosystem enablers. Each of these stakeholders plays a critical role in the growth and success of a startup, and identifying and engaging with them early on can make a significant difference in the outcome. In 

, we’ll try to shed more light on the characteristics of each party and how you could select the right candidates for your startup!

Cofounders are the individuals or team who started the company and are responsible for developing the business model and strategy. They are often the driving force behind the company, providing the vision and leadership necessary to build a successful business. Identifying the right co-founders early on can be critical to the success of a startup, as they will be the ones who will be working closely together to build the business. They should have complementary skills and share a common vision for the company.

A real-life example of the importance of co-founders is the story of Steve Jobs and Steve Wozniak, the co-founders of Apple. The two met in high school and shared a passion for technology. They started working together on building computers in Job's garage and eventually formed Apple Computer in 1976. Their complementary skills and shared vision were key to the company success. While Jobs was the visionary and marketing genius, Wozniak was the technical genius who designed and built the first Apple computer. Together, they were able to build one of the most successful and innovative companies in

Customers are not only a source of revenue; they are the heartbeat of a startup ecosystem. Beyond purchasing products or services, they provide invaluable insights, feedback, and validation crucial for iterating and improving offerings. Customers drive innovation, shape product development, and serve as brand ambassadors, fostering loyalty and word-of-mouth marketing.

A real-life example of synergy with customers is Slack, the popular communication platform. Beyond being a revenue source, Slack&#39;s early adopters played a pivotal role in shaping its features and functionality. Slack actively engaged with users and incorporated their feedback. This approach helped Slack evolve into a tool that perfectly catered to the needs of diverse teams, driving its widespread adoption and success. Customers became not just users but collaborators in Slack journey towards revolutionizing workplace communication.

Mentors are experienced individuals who provide guidance and advice to the startup founders on various aspects of building a business, such as technical, legal, financial, and more. They have been in the industry before and have the experience to guide the start-up team to avoid common mistakes and make better-informed decisions. In addition to providing valuable advice and support, a good mentor can also connect the startup to valuable resources and networks.

An example of the importance of mentorship is the story of Mark Zuckerberg, the founder of Facebook. When Zuckerberg was developing Facebook in 2004, he sought out the advice of experienced entrepreneurs, such as Reid Hoffman, the founder of LinkedIn. Hoffman provided valuable advice and guidance to Zuckerberg, as well as introductions to key investors and resources like Peter Thiel, which helped to make Facebook successful today.

Investors are individuals or institutions that provide the startup with the capital it needs to grow. They can include angel investors, venture capitalists, and other financial institutions. They are crucial to the growth of a startup, as they provide the necessary funding to develop the business and bring the product or service to market. However, it is important to choose the right investors, as they should align with the company’s vision, values, vertical, and phase.

The story of Airbnb exemplifies the transformative power of investors for startups. The founders of Airbnb, Brian Chesky, and Joe Gebbia, struggled to raise money for their business in its early days. However, in 2009, Sequoia Capital invested $585,000 in the company. This investment allowed the company to continue developing its platform and scaling its business. Since then, Airbnb has raised many more rounds of funding from various investors and is now valued at billions of dollars.

Startups rely on service providers, which can be companies or individuals that provide the startup with the goods or services it needs to operate, such as legal advice, accounting services, or technology solutions. By identifying the right service providers early on, a startup can access the expertise and resources it needs to navigate the early stages of seeking product market fit. For example, a legal service provider can help the startup navigate the complexities of incorporating the business, while an accounting service provider can help the startup manage its finances.

A real-life example of a startup that leveraged service providers early on is Stripe. Stripe is a fintech company that provides a payment platform for businesses. To build its platform, Stripe needed to work with various service providers, such as payment processors and banks. By identifying and working with these service providers early on, Stripe was able to build a robust and reliable platform that has helped the company to scale and become one of the most successful fintech startups in the world.

These organizations include regulators, government agencies, universities, research centers, grants' givers, and others that support startup growth and development by providing funding, infrastructure, and other resources. By identifying the right ecosystem enablers early on, a startup can access the support and resources it needs to navigate the early stages of growth and scale.

A real-life example of an ecosystem enabler is Stanford University. Through its renowned Stanford Research Park and various entrepreneurial programs, it provides a fertile ground for innovation and collaboration. Stanford close ties with Silicon Valley tech giants provide startups with a wealth of opportunities, including invaluable networking, mentorship, and access to funding. From pioneering research to fostering a culture of entrepreneurship, Stanford University plays a pivotal role in nurturing and propelling startups toward success. It's a beacon of inspiration and support within the vibrant

Startup Ecosystem Partners

Young entrepreneurs who are considering beginning their own firm should be prepared for a range of ups and downs. Although you may refer to them as "difficulties" and "victories," experts and seasoned businesspeople understand that these are simply normal stages of a company.

If every firm is different, how can a start-up have any stages of the lifecycle?

To answer that, we should know that all start-ups differ to some extent, but they all have a common characteristic or you can call it a unified model for growth from being an idea into a company with clear business model

For you, this regularity indicates good news. Don't dismiss a start-up concept because it seems unsettling, difficult, or unpredictable. Just take it and adhere to the steps listed on the checklist. Be patient, love what you do despite everything, and have confidence in yourself.

These are all components of a winning secret recipe for start-ups.

What are the five starting phases that foretell the future of every business concept?

Each start-up is a marathon with 5 pit stops that bring it to the next level:

Let’s check what’s going on each stage.

Every endeavour, particularly a start-up, begins with an idea. So, spend some time imagining your company in great detail. How will you proceed? Who will you look after? Why would these people require your service or product in their daily lives?

Each company is essentially a solution to a certain issue. If your company doesn't make any improvements, it probably had a poor start. Therefore, edit if you know your aim and context in advance in order to be effective. Find the answers to these questions before starting your firm, if possible. Don't waste your time or your resources.

Identifying your target audience is the next step after broad theorizing. Understanding your customers is essential for survival. Therefore, as the creator of a startup, be passionate about getting to know your clients better and better every day. Utilize all the information you can, including academic studies, forum posts, government statistics, social media profiles of your rivals, in-depth interviews with your initial clients, and scientific research. Continue until you have thoroughly defined the consumer profile.

The ultimate objective of every such investigation is to identify the customer pain, or the particular issue that is acute enough to have an absolute value. Once you have acquired this priceless information, you are on solid ground to go to the next level.

The largest error committed at this point

 is starting a business in the hope that some undefined "people" will find it appealing.

 Get to know your clients. Become a fervent supporter of them. Continue until you can clearly see their persona and their suffering. If it will benefit your business, find out what they have for breakfast.

2. Developing the Minimum Viable Propduct (MVP)

Don't become overly enthused and go to extremes when you've gathered enough proof to put your theories into effect. The second stage is not about getting your employees a massage or renting a penthouse for your office. Before declaring that you have identified all consumer pain points, use an MVP to verify your theory. The greatest way to monitor client behaviour practically and minimize your risks is with this solution.

In addition to confirming your company's fundamental goals, an MVP also makes important technical specifics clear. The best 5 tools for testing your theory are listed below:

User interviews (when you ask which problems your first clients had with your product)

landing pages with an explanatory film (in which you highlight the features of your product)

A/B testing is your best buddy for figuring out which of two variants people prefer, especially if they can't decide for themselves

Promotional campaign (enhance your insights with the extensive statistical data from Google Analytics and Facebook)

fundraising initiative (ask your users to vote for your service with their money)

Utilize every instrument available and get a sufficient number of first consumers to profit from this move. Spend money creating a landing page and starting a crowdfunding campaign because these are the best methods for determining the true demand.

 is developing your product without demonstrating it to customers.

 engage your customers at every stage of the product development process. Recognize the value in each piece of criticism and utilize it to guide your work going forward. Utilize every metric at your disposal to have a thorough understanding of your consumers' responses.

It's time to optimize your product for the market demands once you've built up a following of supporters who agree with your viewpoint and are willing to pay for your solution. Don't rush; the development should be easy and even gradual. But avoid losing control of the situation by frequently monitoring the KPIs for the retention rate.

Everything should be tested, including your landing page's CTAs, social media messages, and funnel stages. Pay close attention to your distribution channels because there will eventually only be a few worthwhile platforms for future optimization. Don't be scared to abandon some projects halfway through.

The main objective is to remove the superfluous components and enhance the functional ones. That's when your company transforms into a distinctive solution with all the qualities required to address its market in the most effective manner. Simply said, that is how you handle an issue in an unusual way.

 was allocating equal resources to each direction.

 Pay close attention to the most efficient methods and procedures. Work diligently until every technological aspect is flawless and your user base begins expanding steadily.

When you've developed a close relationship with your target market and have the ideal product to provide, it's time to scale your business. Analyse your company's core strengths critically in order to make a sensible choice. Then, hire the best experts to build upon and enhance these assets. Make sure these new hires get the resources, funds, and operational freedom they need to perform at their peak.

The wisest investment for the future is expanding your workforce. Any work, whether it be the addition of new features to an existing product, a new service, or an entirely new project, can be accomplished with the proper people in place.

 was letting our guard down and believing that the hardest times were behind us.

 avoid wasting money on experts. Even if your team has previously shown its commitment in earlier phases, you still need to hire the best new talent to distribute management responsibilities and ensure the long-term viability of your firm.

You're about to become a global firm once all the prior steps have been successfully completed. The possibilities are endless, so be daring!

If you've succeeded in your own nation, seek for chances to grow there as well. You'll never get bored because every new country brings with it new difficulties! There are 200 countries in the world, giving you 200 chances to establish a business based on the same concept.

The largest error committed on this level was focusing just on your domestic market.

Never stop learning and pushing yourself to grow as a person. Launch each new nation as a start-up: determine the target market, create an MVP, put in a lot of effort to launch, and choose the best local team.

The more you adhere to these steps mentioned and avoid being biased toward your idea, the higher chances of success you will have with your business. You should give a great attention to common mistakes which entrepreneur fell into during every phase of start-up life cycle

Start-up Lifecycles - main stages from being an idea until successfull business

 why some start-ups need to apply for funding. We mentioned that they raise fund mainly for growth purposes.

The start-up needs to go through number of funding rounds and prove that the idea deserves the money, meeting different goals and challenges every time. Each round is designed to raise enough capital to meet a specific target corresponds to in which stage the start-up is positioned now.

Here we will list the different funding rounds and correlate it with the different stages of the start-up lifecycle:

Pre-seed funding is when founders are trying to give their idea the initial push and often invest their own money, or the people who are believing in you and your idea such as family and friends.

The seed round typically occurs when the business is still in the idea stage or when the founder has a prototype or proof of concept and some indication that there is a market need for what they are proposing to sell.

If not earlier, an angel round frequently happens when a company is barely getting started. It is likely that it won't be generating a large enough cash flow to cover all of the day-to-day operating expenses, which means that an investment will be required to operate the firm.

Despite the names, a sizable part of funding for both seed and angel investment rounds typically comes from friends and family. It may also involve capital from angel investors who support start-up businesses.

Given that the company will likely have little to no track record and that the risk would be greater than it would be for a more established company, investors will typically invest smaller sums in exchange for shares.

Investing at this stage is typically viewed as high risk because the company will likely still be in the beginning stage with a lot to prove, similar to the prior round.

After a company has issued share options (usually to founders and employees), it will often offer a Series A round of shares in return for funding.

Venture capitalists might be interested, but angel investors also might. Angel investors frequently have substantial net worth and invest their own money. VCs and other institutional investors frequently invest other people's money, therefore in order to lower their risk, they typically only invest in businesses having a track record of success.

A series B round is, as you might have guessed, the second round of funding provided by VCs and private equity investors. The corporation will likely be valued more than it was earlier at this point. Due to the business's track record and reduced risk than before, investing will cost more money.

Investors will expect to see signs of growth at this stage in:

A Series C financing is typically necessary when a business is ready to pursue rapid expansion. The business will typically:

have achieved market success that can be verified

Increase production or create new goods or services.

It is simple to comprehend what a round means for the company raising money and how far along it is on the path to becoming an IPO by understanding the differences between each sort of funding round.

Initial public offering (IPO) is the process of making a private company's shares available to the general public and is the last phase of a startup's life. At this phase the start-up turns into a company available for anyone to buy stocks in it.

This enables access to a sizable quantity of capital on the open market as well as a higher degree of transparency. However, since you now have to deal with shareholders in addition to investors, it also entails more complication. You should anticipate that such partnerships will take a lot of work and be difficult and expensive.

Different rounds of investment in a start-up

In investment model of equity crowdfunding, start-up offers to investors a piece of the company in exchange for their money. Equity funding is commonly known to exist, with private equity, venture capital, and angel investing having long-standing roles in growing businesses. Equity crowdfunding differs significantly from these conventional methods in that it offers participation to a broad spectrum of potential investors, some of whom may also be present or potential consumers, rather than building a one-to-one relationship. Equity crowdfunding accomplishes this by using an online platform to connect businesses with potential angel investors.

Here are some key features the entrepreneur needs to consider when fundraise through crowdfunding:

You will need to establish the conditions, decide how much you want to sell, the price, and the manner in which investors will be compensated. To effectively estimate a project, you need to have good competence.

A success fee as well as any necessary legal or administrative costs for the issuance are typically the costs associated with seeking equity financing using a crowdfunding platform. Additional legal and consulting expenses could apply.

You can have many tiny co-owners instead of a few huge investors since many people can invest. Usually less expensive than having a stock market listing.

You must create a business strategy and financial predictions to demonstrate that your company is ready for financing. Additionally, you should have an effective communication strategy in place so that potential investors can simply access and comprehend the most crucial details about your business.

The platform often performs due diligence to make sure that start-up is qualified to be listed for fundraising and the investor may choose to request more information about business.

There are significant legal considerations, the costs of which you shouldn't be disregarded. These considerations include disclosure and legal documents, shareholder annual general meetings, processing of corporate rights, yearly reports, and decision-making processes.

Why startup cofounders need mentor(s)

What startup should consider when fundraise from investors

Selecting the right co-founder and how to make an agreement

Startup Ecosystem Partners

Start-up Lifecycles - main stages from being an idea until successfull business

Different rounds of investment in a start-up

Equity-based Crowdfunding

What is Crowdfunding

How start-ups raise fund

Investment options for passive income

What is a start-up and difference between startup and small business

How can I find a cofounder for my startup (or join someone's startup as cofounder)