In this segment we talk about how long it takes a startups to raise funding.
approach in all these different groups has to take time and money. That's right, what should be allocated for it? What should a founder be thinking in his head? When I want to raise funds to allocate a month to do it a week to do it a lot longer? Should I allocate so much of my budget for what? What advice? Would you give a startup in their fundraising process and plan?
I I think those are questions actually, or the answers to the to that that question, those questions vary significantly. Generally, though, I would say that a startup is probably going to have to develop the product or service whatever he or she is working on for at least probably six months before they're likely to have what's called a an MVP, what's an MBA an MVP is a market viable product, it could be a service as well.
And generally would, it would probably take about six months at also to get to get some initial external funding in place.
One thing that I would recommend, though, is that founders and startups do try to get some funding reasonably early in the process. Why is that? And the reason I would recommend that actually, is that if you're talking to third parties about your idea, and your product or service, it's very good to see what reactions you're getting. And you can test your idea against these people. And if you can convince people to invest in your product, you're doing a pretty good job.
And so if you like going out to talk to third party persons, and investors in particular, give some sort of validation to what you're doing as well. And there are even founders or serial entrepreneurs who who have significant funds available. However, if they set up a new startup or company, they nevertheless go out to test it and check about its viability with other investors as well. So it's a very good way of trying to get multiple eyes to look at what you're doing and to see whether what you're doing will take off or not.