Where you are in your #startup journey and what you have defines what you need and where you can go

Name: Where you are in your #startup journey and what you have defines what you need and where you can go
Uploaded: 2023-06-03T09:15:39+00:00
Duration: 59 s
Channel: James Sinclair
Description: James Sinclair breaks down three types of early-stage funding: Dream capital for testing big ideas based on founder track record, Growth capital for…

3 Jun 2023 · 1 min

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James Sinclair breaks down three types of early-stage funding: Dream capital for testing big ideas based on founder track record, Growth capital for startups with traction or revenue, and Idiot capital from friends and family who invest on a whim. Where you are determines what money you can actually get.

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Got our founder going for angel capital. There's really only three types. There is dream Capital, growth capital and idiot capital. Dream capital is we have this idea, we know it's big, we know there's something there, we know there's a massive opportunity. We've got this idea of a solution. We think this is how it's going to make money. We this think it's how it's going to get there. And we want money just to see if we're right. And you're getting the money based on your credentials, your proof, your historical proof that you can iterate, pivot and find the market in the market that's going to crush it. You are getting the money. Your deck is irrelevant. The second is growth capital. We've created an mvp, we've got some traction, we've got some partnerships, we've got some revenue, we got something here. And now you're being judged based on what you've created, the market size, the opportunity and your capability to take it to that next level. And then the third is idiot capital and it's not meant rudely. It's friends, family, other founders, first time investors who are going to just judge you on some arbitrary thing.