Top Resources on Startup Funding & Venture Capital

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  • Public opinions about new Start Up ideas

  • Francisco

    Member
    March 12, 2020 at 2:23 pm

    Hi, I am Kiko, and I love beer. But I also like to try to help other as much as I can. As the beer market is very saturated, some idea came to my mind of creating a pro bono beer company which would donate all profits to a cause, in my case the Iberian Lynx, an Spanish wild cat highly endangered.

    If this beer was good, tasty and cheap, would you buy it and contribute to a cause while you are just enjoying its marvellous flavour?

    I give you a picture of my initial design.

    Thank you very much.

  • tytchme

    Administrator
    March 16, 2020 at 10:22 am

    Hi Kiko, thanks for posting the idea.

    How does the business model work if you give all your profits to a charity? A growing company generally reinvests profits (if any) to grow more.

    Also, are you planning to produce the beer or just buy the bottles from a third-party manufacturer? If you have Capex, you need to cover these, too.

    Love the “lean startup” approach, but would also like to know more…

    • Francisco

      Member
      March 16, 2020 at 11:33 am

      Absolutely the fact of being non-profit makes this case unique. A conventional VC would not want to invest in such a company as they will not be able to reap rewards. I believe only Foundations and companies such as those would. As I want to create the beer myself, in principle CAPEX would be necessary and high.

      What investors do you think would be prone to invest in this company?

  • tytchme

    Administrator
    March 16, 2020 at 3:40 pm

    You’re right, it’s not VC material. But no charity / Foundation / HNWI will give money to a company that is not sustainable over the long term. Otherwise, why not give money to the cause directly?

    You need to have a business model and a realistic plan to reach profitability. The idea for your investors is that they help you get the company started, but after that, it generates profits that can be invested to save the Iberian lynx.

    You will also have to convince them why it’s worth saving this species vs. another. As you will gradually realize, the VC pitch deck methodology can be applied to much more than just raising funds for startups Cowboy

  • Gabriel

    Member
    August 5, 2020 at 12:39 pm

    Hello Francisco! No matter what your business is going to look like, you will generate profit if people buy your beer Beer: the Key is how you’re going to allocate it => you may allocate one part of it to have personal income (living wage) + self-financing (you will need at least maintain your equipment) + credit refund (if applicable) + …; then you’ll be able to donate the rest.

    You may adopt a BM where people will donate e.g. 1USD when buying your beer (you should bring this up on the product label). You will need to make customers be part of your mission, to make them know what is happening thanks to their purchases. (I think about http://www.givewater.com).

    The best of luck with your project Muscle

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