Start a New Type Finance
How to Start a new type of finance: despite the distrust, there are already many successful tech startups founded by young people, like Google. So we asked, "What did these entrepreneurs under 30 do to gain trust and be taken seriously? Here are some experts' recommendations.
Start a New Type of Finance
Proven results as soon as possible. Many experts believe that no team should try to reach investors and other key stakeholders before demonstrating that their project has traction and is viable. This is accomplished by first bringing a product or service to market and acquiring a portfolio of actual and potential customers.
Soriano believes it is essential to "provide credibility through startup metrics. This type of project, he believes, "must prove that it has already penetrated the market.
What must not be lost sight of is that all experts agree that newborn companies must demonstrate that they can profit from the market and not from subsidies. In Spain, there are many startups that survive on various subsidies. This scares investors away.
Experts consider this very important and believe that young entrepreneurs should not wait for their service or product to be "perfect" but first test its feasibility, even in the early stages, and adapt their offering to the market demand. This is important for all entrepreneurs, but even more crucial in the case of the very young.
Given your credibility issues
Surround yourself with older and more experienced people; many experts agree that a team composed entirely of 20- or 25-year-olds is unlikely to assert itself in the eyes of investors, suppliers, or customers. How can this problem be overcome? Simple. By being around people who have proven themselves as managers or who have been successful in business.
Some startups seem to have solved this problem by integrating some of their investors into their boards of directors, by setting up advisory boards, and by hiring top-notch executives as management or at least (because they are often expensive) as advisors.
Eric Remedios describes several of the startups that Business in Fact has participated in, "We have relied on the attention of entrepreneurs who not only invest management resources, but also incorporate discipline and methodology in their management to learn enough from the market.
How to skip finance in times of trouble?
Alvarez de Lara notes the need for young entrepreneurs to "build a balanced team that complements each other in terms of age, experience, and skills."
IE's Soriano also emphasizes the importance of networking, saying, "When used well, it can be very important. Networking, whatever its nature, allows you to develop and access more relevant stakeholders who can boost your project".
Young entrepreneurs can also gain more credibility by publicizing the names of mentors, business angels, and managers who can help them with their projects, whenever possible.
Incorporate them into your support system. If there is one thing a new entrepreneur should not do, it is to be a "lone wolf". All experts recommend that these entrepreneurs actively utilize the many support organizations that exist in Spain.
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