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Q: It looks like investors want a team before they offer funding but a startup needs funding before they are able to attract great talent. So, how do i attract great talent without capital, therefore i can present my strong team to investors? It looks like the answer is always equity however in expensive places like Silicon Valley, my employees need something to go on.
A: You’re absolutely right. In the end, investors fund companies not only ideas, and those need a team of at least two to four people.
Before backing a business, VCs generally want to see that the entrepreneur could excite other folks and encourage them to join a team and create a business. But of course, where should a business owner begin in attracting talent?
Related: 5 Best Places to Find Qualified Talent
While, there is absolutely no clear-cut answer, below are a few factors to bear in mind:
Starting a company is simpler than ever. Being a founder is a wonderful exemplory case of pulling yourself up by your bootstraps, which explains why you hear people starting companies out of their garage or while in college. By have tools and platforms that allow companies to launch at a fraction of the price required ten years ago, entrepreneurs can use the tiny resources they must spend money on talent.
The need for really knowing your business. Before ending up in angels or VC firms, entrepreneurs have to get a company grasp of what problem they want to solve and how their startup is a solution. Usually, they first talk with family and friends who know and trust the entrepreneur. Not merely does this supply the chance to get visitors to invest in the theory but also allows the entrepreneur to make a minimal viable product and do market testing, enabling he or she to seriously understand the business enterprise and vision.
Knowing your business and the needs you want to fill will last well in countless ways, including bringing on equally passionate talent to your team.
Related: three ways to Recruit Talent for a Hungry Startup
Creating a passionate and galvanized team. When you are prepared to find people for your startup, get in touch with your network. Just when you are reaching out to family and friends to bootstrap the business enterprise, connect with those individuals inside your network and community and inform them that you’re looking for folks to become listed on your team.
While you are in the recruiting stage, know very well what function you’re hiring for and stay focused. Need technical talent? A savvy marketer? It certainly helps to know very well what exactly your preferences are and pinpoint qualifications before starting your search.
Also, turn to leverage platforms like AngelList. Build out an intensive company profile. Include any prominent angel investors on your own page, clearly articulate what your company’s mission and goals are and utilize the jobs page to list open job positions.
Solid ideas with passionate and tenacious founders attract teams, attention and capital in a manner that was not possible just a few years back. Of course, it’s still tough. Only a little fraction of companies that are born become funded, but many positive doors have opened for entrepreneurs within the last 10 years.
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