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Funding: Launching a startup with no job and no savings. Should I get a job or find investors?
SL
SL
Stephan Little, Managing Partner at Zero Limits Ventures answered:

Wow, lots of questions here. Let me try to hit them in order:

"Should I get a job or find investors?"

IF you have access to enough investor capital (not debt and not your savings) and you can get to MVP and still maintain ownership of a sizable majority of the business then do it.

IF that means debt financing then only use the debt lines the cost of which can be carried by returns generated by the use of funds.

I would prefer to offer a convertible note to prospective investors that can be easily extended throughout both friends and family and seed rounds (up to $2M to $3M) to get to proof in the market.

If you can get to revenue and earnings fast enough then you can avoid equity dilution all together.

IF you cannot secure that find of funding AND you cannot produce enough revenue from your business to deliver sufficient earnings for you to live on, then by all means, you should find a way to make the money you need and not burn all your savings or mortgage your home

If that means short term contract work that's great. Particularly if you can find log term work that is relevant to the business you're building.

If that means taking a job then do that. IF you do that, then yes, be transparent with your employer and let them know you're working on your own business also.

Hope this helps....

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