Startup Money Burns Too Fast? Try the Excubator!

0

Most startups we’ve encountered run into the same major problem: they invest too much in building their product and forget about sales and marketing. They miss the opportunity of picking additional capital on the way and soon run out of money. All this, long before they hit the market.

It’s a matter of business education: the entrepreneur shouldn’t hurry to launch, before raising enough capital for both product development, and sales/marketing activities. It’s the only way to ensure the rapid growth that investors seek and also to gain a foothold on the market.

Yes, it’s a matter of education, but not the kind of lesson one can learn from university or some startup incubator/accelerator.
Only the agencies can provide the necessary know-how. Not the big players, but the “boutiques”. They are experts in niche domains and have first-hand knowledge of how to stretch startup marketing pennies into revenue dollars.

This is the “excubator” model of how to raise a startup. The specialist meets the startup with a considerable discount: 20 to 40 percent. The “excubator” might also take an equity position. This is the beginning of a long partnership, which improves the startup’s chances of success from 10% up to 30%.

Of course, this may not prevent the startup from running out of money, but in an ideal situation, the excubator might have access to some venture fund. Just enough to get things started.

Leave A Reply