How To Raise Funding With No Product

Ever noticed how AI founders raise insane amounts of cash before they've even got a product? I’m talking pre-revenue raises that would make your head spin.

OpenAI co-founder Ilya Sutskever's new AI safety startup just scooped up north of $1 billion. And they don't even have a product yet. This is how their current website looks…

Some people are calling it crazy. Others are scrambling to get a piece of the action. But here's the thing – maybe it's not as wild as it seems.

Why are investors throwing cash at ideas, not products? And how can we get some of these cash injections for our own companies?

Today at a Glance:

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Fundraising with nothing

Why do some founders raise billions with nothing, while others struggle to raise a few hundred thousand with a profitable product?

Name in the industry, vast network of like-minded people and also having a expertise in the given field is a must have. But there’s more to it.

Vision is your currency: When you've got nothing tangible, your vision becomes everything. Paint a picture so vivid, investors can't help but see the future through your eyes.

Team is your trump card: No product? No problem. A rockstar team can be your golden ticket. Show investors you've got the crew to turn ideas into reality.

Market potential is your magnet: Big markets attract big money. Growing market attracts customers. If you're targeting a massive opportunity, investors might just bet on you to capture it.

Or here’s the longer version taken from Peter Thiel’s Stanford lecture:

FOMO is your friend: Do you think the investors passing on investing into Facebook or Google don’t feel like they missed out? They most certainly do.

Your goal is to create a sense of urgency around your product. If investors think they might miss out on the next unicorn, they're more likely to jump in early.

A good practice is to have a “it happens with or without you and you can choose to become a part of it now” mentality.

Storytelling is your secret weapon

Facts tell, stories sell.

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