Last Updated: May 26, 2018
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292
· Kadajett

Want to get your startup funded? Introductions & KPIs

Funding is an interesting process, and a lot of factors go into it. What is your product? What kind of people do you see as your demographic? What time of year is it? (A lot of investors I know spend the winter months in a ski resort)

So you have this idea, maybe even a partially finished application. How do you get the business off the ground with the help of VC funding?

First off, you probably should know what you are building. Not just your application either. How do you plan on gaining new users? If your product is for businesses, what companies do you plan to contact? If you had a sudden surge of users, how would you monetize it?

This is all super important stuff that you need to write down. None of it is solid either, as it should be a fluid document until you can validate your assumptions. As this grows larger and larger, start using the things you have written down to build out new features.

Create ** KPIs ** (Key Performance Indicators) that you think are valid to the health of your business. Let's take Instagram for instance.(clever, eh?) A KPI for them might be the number of pictures posted on their site per day, or the number of hearts on all pictures per day. These are things that are directly changed by their most important metric: ** DAU.** (Daily Active Users)

When you can find KPI's that affect the viral success of your business, you should bend all efforts towards moving the needle on it. Work on raising it or lowering it a few percent. How does it affect your DAU or WAU? When you can figure out what types of new features can swing your metrics in a favorable direction, keep working with them.

If you can prove to investors that you have the ability to pivot, and be responsive to user trends, they will feel much more confident investing in you.


I hope you liked this post. It was really just a quick afterthought, but I hope it was insightful. If you guys like it, I will keep posting more of that I know