Funding a profitable bootstrapped Website. What sort of investment do I need? Next steps?
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Have a website and have done absolutely no promotion, nor spent a huge amount on the site. Just my own time and quality content. Over the last few years it has grown to almost 100,000 members, and receives around 1/2 Million unique visitors a month. - Its not amazing, and there is no hockey stick growth, its stable growth. But, considering that there is no marketing done, I think its great. A lot of my members are asking for my site to be a social network, some are quitting their facebook to just be on my site. (they think it is better!). They are in a wide spectrum of ages, but mostly in the 18-30 age category, the membership is split 50/50 male and female.. and are predominantly from the USA, Canada, UK and Europe. - Apart from English, we also have 11 other languages catered for - as our site is popular all over the world. I know that the idea itself is validated, due to the growing traffic, the fact many members donate monthly, and adsense revenue... and the lack of serious competition in this market. Its all word of mouth right now. I have been slow in going to investors, because the site is.. ugly. I don't even like the domain name! But, people love the site as it is.. Some love it so much they even make t-shirts with the site on it, or make their own little cards which they hand around. The site needs to be made again from scratch, I will need to create a team that can make a social network. -(it is different to Facebook) I know my product and the user audience like the back of my hand.. and I also know there is a huge potential in my segment. I have put together a short business plan as suggested by Sequoia Capital. Also have a bunch of slides showing the traffic from google analytics - and the potential for growing the site. I am based in the UK, however my tech co-founder is in the US, and works in the Valley. He has a few investor friends. What do you suggest I do? Next steps? - I do not know how much to raise. Do I need seed funding? Or Series A? What sort of help do investors give? I really am a bit scared of where to find good developers , product managers.. How do people put their team together?
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Answer:
There are a lot of investment options you could consider and reading blogs like Mark Suster's http://BothSidesoftheTable.com or Fred Wilson's http://avc.com will give you a good sense of those. However, you should also ask yourself whether you really need to bring external capital into the company. You may prefer to grow it at your existing speed and from your own revenues (remember, users don't necessarily know what they actually want!). In the meantime, speak to as many people as you can who have run companies and raised investment before.
Dylan Collins at Quora Visit the source
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