Often, one of the first questions new entrepreneurs ask Tiffany Linke-Boyko, our CEO, during programs and mentorship sessions is how they can secure funding for their startup idea. Tiffany is a firm believer that when is a much more important question than how. Once a founder has a firm understanding of when funding should come into play, they can start building out a timeline for product development to make sure they're hitting key milestones to prepare for funding.
We sat down with Tiffany to get the answer to the funding question founders should be asking.
Q: When is the best time for a startup to seek outside capital?
Seeking investment will vary from company to company and the type of product and industry, but it should be at a place where they have product/market fit and are at a stage where they need investment to help accelerate their growth so they can scale to the next level.
Also, three key things for companies to use as a measuring stick of readiness is considering if they have Product, People, and Proof.
- Product. Does their product have market fit? Do they have a good understanding of who their customer is and have a good problem solution fit? Are they solving a real need that customers are willing to pay for?
- People. Do they have the correct team of people for growing their company? A team grows and changes as the company expands but knowing why their current team are the people that can handle the immediate growth plan is critical for a founder to know. Also, knowing if there are skill/knowledge gaps on their team and how they plan to deal with that.
- Proof. What proof do you have to investors that there are customers that want your product? Do you have customers using and paying for your product? If not why not?
WATCH OUT FOR AN EXTENDED LOOK AT STARTUP FUNDING IN THE FEBRUARY EDITION OF ALBERTA VENTURE!
ABOUT TIFFANY LINKE-BOYKO, CEO
Tiffany leads the team here at Startup Edmonton and keeps us focused on supporting entrepreneurs and founders as they get started on tech-enabled products and companies.
Did you know?
- Tiffany develops our Preflight curriculum and is always on the search for content, case studies, and tools.
- She's an incredible resource for customer validation questions. Be sure to book mentorship hours once you become a Preflight Member!
- Want to get in her good books? Bring popcorn. All the popcorn.