Opinion: Students, don’t ask professional investors for funding

Photo credit: Caleb Woods / Unsplash

Disclaimer: my essays are meant for first-time founders. This time, it’s especially for university students who want to enter the startup world. So again, if you’re a serial entrepreneur or experienced founder, please enjoy this essay as a fun read. I’m not in the position to give you advice; rather, I’m the one who needs your advice. 🙂

Let’s begin.

I was recently reviewing a year-end report at our accelerator Pedals.id, and I’m pleasantly surprised to see that our team has organized 72 events in 16 universities in Bandung, Indonesia. As I read the report, I reflected on my encounters with thousands of university students (usually as a moderator or speaker) and tried to remember the common questions they’d ask.

This is the conversation that often happens.

Student (S): “Andrew, how do we convince investors to fund our startup?”

Andrew (A): “What’s your startup about?”

S: “A blockchain-based app for nose hair trimmers.” (The idea often gets to this level of absurdity.)

A: “Where have you tried to fundraise?”

S: (with glowing eyes and a winning smile) “We haven’t done much. Would Pedals be interested?”

A: “How much funding do you need?”

S: “Not too much, maybe US$7,000-US$14,000.”

A: (in my head) “Are you insane?”

A: “Have you tried your parents?”