As a founder of a company that has gotten to 8 MM users across 95+ countries, and $1M in revenues, and there is a lot more I can tell you in a private conversation. We've applied to VCs along the way, but the model is not always aligned with companies like ours, which make revenue from the beginning rather than hockey stick growth and zero revenues.
One of the major reasons is that these kind of startups often need small amounts to get to the next level, but the due diligence of a VC sometimes costs more than that amount. If there was a "roadmap" model that VC would fund, say, $10K to get to the next level, then $20K, etc. and if it falls short, then they have to seek another such VC and syndicate. A bit like taking on lenders except it would be more along the lines of your Shared Earnings Agreement + Equity. Everything would be clearly spelled out, and rather than spending tons of time on due diligence, it would just be about a history of execution.
PS: We filled out your "regular" application in early April, please check email from @qbix.com ... would love to talk next week.
PPS: If you're a startup founder chime in and add your 2c, does your own experience in early stages resonate with what I've said? That if you were able to break down what you need to get to the next level, in $10K and $20K increments, with a second or third chance on slightly worse terms, you'd be happy to be funded in that manner, and work hard to make serious progress and document it.
That’s like paying a UBI of $300 a month vs paying a whole department doing means testing for $100/month and then paying $300 a month of welfare to those who qualify.
May as well do something more automated and send the money. Like what Tyler is doing here — collecting info over time. Make the entrepreneur spend most of the time providung the due diligence in the format you want. They have the time not the money — and it is reusable for other investors too.
It should be a portal. Like the “Prizes, not Patents” debate. Same thing.
I really like where you are going with this. Trailhead seems to be a formalization of the method that has worked best for my startup: keeping investors in the loop as to the development of our company, soliciting and then incorporating their (usually very valuable) feedback when we need it, and being transparent about where we are in terms of a raise.
Really great idea, and I hope more investors follow in your footsteps.