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Fundraising: How can I go about raising money for my startup when the growth model is based on users and not revenue?
DD
DD
Dragana Djuricic Mendel, MBA, MCS, technology commercialization; business growth path answered:

The sole purpose of a business is to make money. If that is not the case for you, then you are not building for-profit business. Days of acquiring users and raising funds solely based on the millions of eyeballs visiting the web site has passed. With SW&HW being commodity, marketing is emerging as the most expensive cost center for B2C high growth startups. Consumers are willing to pay for the service that they value, so I would focus on pricing strategy, looking for price-value equilibrium that your customer is willing to pay. Hopefully, the price point and the volume of paying customers would be financially attractive not only for you, but for an investor too. There's no way knowing where that equilibrium is until you try, refine, iterate...

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