How to Raise Funding for Your Startup from Scratch: A Practical Guide for Founders

Launching a startup is thrilling—but one of the biggest hurdles every founder faces is securing the capital needed to grow. Whether you’re dreaming up your first digital product, building a SaaS platform, or developing the next creative AI tool, funding is the fuel that brings your vision to life.

This guide unpacks proven strategies for raising startup capital, from bootstrapping all the way to venture capital—complete with real-world lessons from founders who’ve walked the path, including MOCHIMIN’s own journey under Kenz Tran.

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1. Bootstrapping: Building with What You Have

What is bootstrapping?
It means funding your startup with personal savings, early revenue, or small loans—without outside investors.

Why start here?

• You keep full control and all your equity.

• It proves your commitment and product viability to future investors.

Real examples:

• Mailchimp grew to a billion-dollar business with founder capital and early profits.

• Base.vn (Vietnam) launched and iterated using founder resources before raising outside money.

• MOCHIMIN, led by Kenz Tran, started by bootstrapping—building products like Lazy Prompter and serving thousands of users before seeking external funding.

How to succeed:

• Prioritize spending on your core product and essentials.

• Reinvest early revenue into growth.

• Stay lean, agile, and focused.

Bootstrapping works best for startups that can reach revenue quickly.

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2. Crowdfunding: Mobilizing the Community

What is crowdfunding?
Raising small contributions from many people through platforms like Kickstarter, Indiegogo, or Vietnam’s FundStart.

Who should use it?

• Startups with mass appeal or community-driven products.

• Creative tools, SaaS solutions, and innovative ideas.

Success stories:

• Pebble (smartwatches) raised over $10 million on Kickstarter.

• Bánh mì Má Hải expanded its business through community fundraising.

Tips for crowdfunding success:

• Tell a powerful, authentic story—why does your startup matter?

• Create an engaging video and campaign page.

• Set clear, appealing contribution levels.

• Promote your campaign on social media and via email.

Note: Crowdfunding is competitive. Plan ahead and have a fallback if you don’t hit your goal.

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3. Angel Investment: Finding Early Champions

Who are angel investors?
Individuals with capital and experience who invest in promising startups, often in exchange for equity.

Why pursue angel funding?

• Get access to seasoned advice, networks, and support.

• No loan repayment pressure.

Example:

• Foody.vn secured early angel investment before being acquired by SEA Group for $64 million.

How to attract angels:

• Research and target relevant investors (via events, LinkedIn, startup communities).

• Prepare a professional, concise pitch and reach out with a brief intro.

• Practice your pitch—be clear, confident, and data-driven.

Note: Angels may ask for a larger equity share. Strike the right balance between control and support.

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4. Venture Capital: Scaling Up Fast

What is venture capital?
Institutional funds investing in startups with high growth potential, usually for a significant share of equity and a seat at the table.

When is VC right for you?

• You’ve validated your product and market fit.

• You’re ready to scale quickly and need substantial resources.

Success stories:

• Tiki raised $175M from Northstar Group.

• Momo secured $200M from Warburg Pincus.

How to succeed with VC:

• Build a strong pitch deck, detailed business plan, and solid financials.

• Target VCs that understand your sector and stage.

• Be prepared for thorough due diligence and negotiation.

• Understand: VCs will expect some control and high performance.

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5. Pitching to Investors: Crafting Your Winning Story

What to prepare:

• A tight, compelling pitch deck (10–15 slides):

  • The problem and your solution

  • Market size and opportunity

  • Business model

  • Team expertise (highlighting strengths like AI/SaaS, e.g., MOCHIMIN’s Kenz Tran)

  • Financial projections

Tips for a killer pitch:

• Practice until you can deliver your pitch in under 10 minutes.

• Anticipate hard questions—have your numbers ready.

• Highlight growth, traction, and customer validation.

• Share your authentic founder story and motivation.

Avoid:

• Long, vague, or data-light presentations.

• Overpromising or presenting unrealistic valuations.

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6. Fundraising Pitfalls & How to Avoid Them

Common pitfalls:

• Not researching investors beforehand.

• Raising money before you’ve validated product-market fit.

• Overspending before you’re ready.

• Depending on a single source of funding.

How to avoid them:

• Choose your funding approach based on your real stage and needs.

• Build investor relationships early—don’t wait until you’re desperate.

• Diversify funding sources and always have a backup plan.

• Stay focused on delivering product and customer value above all.

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Startup Funding Blueprint Table

How to use this table:
Identify your stage, scan “Best For” to find your path, follow “How to Succeed,” and watch out for common pitfalls.

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What to Prepare for Every Funding Path

• Bootstrapping: Lean budget, product plan, personal commitment.

• Crowdfunding: Compelling story, video, reward tiers, social campaign.

• Angel Investment: Tight pitch deck, traction data, personal outreach.

• Venture Capital: Business plan, financials, market analysis, diligence docs.

• Pitching: Concise slides, confident delivery, backup data, founder narrative.

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Pro Tips for Every Founder

• Start networking before you need money.

• Always have a backup plan.

• Keep product and user value at the center of your pitch.

• Highlight your unique strengths and traction (like MOCHIMIN’s rapid growth and launch of Lazy Prompter under Kenz Tran’s leadership).

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Conclusion: Funding Is a Journey—Not a Destination

In the earliest days, bootstrapping and crowdfunding might be your best friends. For rapid growth, look for industry-savvy angels. When you’re ready to scale, approach VCs prepared and confident. There’s no universal formula—but with a smart strategy, a powerful story, and real traction, you can attract the right capital and partners to help your startup thrive.

MOCHIMIN’s journey, led by Kenz Tran, is proof that strong product focus, thoughtful funding, and relentless execution can help any startup—anywhere—find its path and grow in today’s competitive world.

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