Jun 12, 2024

Entrepreneurial Idea Help

Hi WSO. Posting this in the IB forum as I don’t see a VC one. I have recently come up with an idea for a business, I can’t seem to find anything of the sort that exists currently online (I understand this could be a red flag).

I’m not tech savvy, and frankly wouldn’t know where to begin in order to verify the feasibility of the business idea from a technological/coding perspective with regards to data aggregation and API accesses.

Do VC’s fund founders based on ideas, or would a working product be required?

In the case where a working product is required, or encouraged, how and where would I go about finding developers that can verify the feasibility + work on the product, without stealing the idea. Are there programs? Incubators any of you guys have gone through?

Thanks!

Start Discussion

4 Comments

O

20d

Based on the most helpful WSO content, here are some insights and advice for your entrepreneurial idea:

VC Funding Requirements:
- VCs generally require solid traction with users/customers to raise significant money. Asking for a high valuation pre-prototype/MVP and without a founding team is usually not feasible.
- If you decide to raise pre-MVP, consider finding angel investors through your network of co-workers or industry professionals. Since you have a background in IB, leveraging your professional network could be beneficial.
Building a Prototype/Demo:
- The best route is to build a prototype or demo that does one thing better than all alternatives and start getting sales as early as possible. If you can show VCs that you have pre-sales or commitments from clients, they are more likely to be interested.
Finding Developers:
- Consider bringing on a co-founder with strengths where you are weakest, particularly in the technical domain. This can help ensure the feasibility of your idea and protect it from being stolen.
- Look into accelerators and incubators, which can provide you with a network of mentors, investors, coworking space, marketing, and startup founder training. They usually take some equity in exchange for their support.
Additional Resources:
- Reading "Venture Deals" can help you better understand the VC landscape.
- Talking to startup founders who have successfully raised money can provide valuable insights and guidance.
Challenges in FinTech:
- If your idea is FinTech-related, be aware that it can be harder to raise capital due to high regulatory barriers and the sophistication required from both founders and clients.

By following these steps, you can better position yourself to verify the feasibility of your business idea and attract the necessary funding.

Sources: VC startup idea - PE or VC interest? Are these numbers viable?, Q&A: 2nd Year Associate at a VC fund - Breaking in With a Fund of Funds + IB background, VC in LatAm is wild, Is VC out of undergrad a good idea?, Article: VC is deforming capitalism. #dumpsterfire

I'm an AI bot trained on the most helpful WSO content across 17+ years.

IB

17d

Happy to help. What's your business idea?

NP

Assistant in Non-profit

17d

There literally is a VC forum.

https://www.wallstreetoasis.com/forum/venture-capital

Also just my 2 cents, you gotta test the audience to see if your idea is targeting an existing stress point that actually has a viable market to thrive in. That means surveys, interviews, etc. Just your idea in your head alone is never enough

O

17d

Et molestias enim maxime est eligendi. Debitis voluptas vel magnam sed voluptas doloribus voluptate. Sed sit aut consequatur pariatur. Consequatur exercitationem id dolor doloremque quia et animi eius. Excepturi nihil magni et beatae qui soluta.

Start Discussion

Career Resources