We are in the age of venture capital, and seed funding, with millions of startups launching every other day. David Warshaw, the founder of Moneysling, got to chat with us about the platform. Moneysling is a free networking platform that allows start-ups, entrepreneurs, and investors to connect, collaborate and pitch their ideas.
In our discussion, we got to look at some of the challenges startups face in raising capital, as well as investors in finding investor-worthy startups to put their money in. Catch his Warshaw’s opinions below:
About venture capital
As more startups come up, it gets harder to find investible ones. More and more investors are taking time to do due diligence. But how this plays into the whole startup field is very interesting. “It’s a great time to begin investing! However, people are looking for more creative outlets for their investing; and having equity in a successful business is one of the best investments you can make,” says David Warshaw.
“Over the past few years, there’s been a shift from traditional, large business models to lean, mean, and user-focused funding models. What this means for investors is that they have the opportunity to join a start-up on the ground floor with investments that could reach far beyond monetary. For instance, they may be able to support a start-up with the skills they possess, or the contacts they have.”
Outstanding investment issues and how Moneysling helps
Seeing as the whole mix of a very volatile market, many startups innovating around the world sometimes in fields unknown before, and with investors more skeptical than ever before, there are issues in the sector. “Currently, there is no other online platform that allows everyday people to connect with new start-ups or investors,” says the founder. This is despite the fact there are several platforms for founders and co-founders.
“On other platforms, if you are an investor, you must be accredited or become a venture capitalist just to be considered. If you are a start-up, you have to submit your business for review and are given matching “angel investors” based on the opinions of a third-party company.”
Such platforms have curtailed discussions between founders and investors online. David Warshaw agrees, and believes that Moneysling has every chance to change that and create better rapport between startups and investors beforehand.
“Moneysling allows individuals to connect and collaborate on their terms,” he says. “We do not take a percentage of any transaction between our users or get involved in any deals. Moneysling is a simple networking site for collaborating and building long-lasting business relationships.”
Industry or regions
As more opportunities arise, Moneysling will be a good center for every discussion if the growth is exponential. Several industries need such a platform. Unfortunately, the platform only caters to startups within the United States.
“The beauty of Moneysling is that our users can collaborate with anyone, from a neighbor down the street to a “shark” on the other side of the country,” adds David.
Best practices for startups seeking investors
Startups and founders have done it wrong many times before and they continue to do it. Luckily, so many others have done it right before. David states that legal representation when starting a company or investing is essential.
“We have seen too many people get taken advantage of because they did not fully understand the contracts they were signing.”
Many founders underestimate the terms of the deals they sign. The assumption that the person you are signing terms with has your interests at heart can be a fallacy sometimes.
Additionally, “sell yourself!” says the Moneysling founder. “Be clear with investors. Make sure your business model is thorough but easy to follow. You want investors to be excited about your product and working with your team. Conveniently, one of the best ways to accomplish this is to create a “pitch video” and post it on your Moneysling profile!”
Mistakes by startups
“It may sound cliché, but KNOW your company! Or at least have someone with you that does,” he says. This plays into how Pressfarm has insisted at every point that understanding your company inside out from marketing to sales, operations, customer support, and acquisition among many other aspects is very important.
“Nothing is worse than being unable to explain your business to a potential investor. Know your financials and margins, your products, and plans for the future.”
Moneysling expansion and plans
Growing a free networking platform is not easy. However, the CEO, David Warshaw, is upbeat about Monesling. As he decides to take this further, it is important to understand what kind of future Moneysling would have before heading there.
“We hope to become a platform for everyone around the globe. Moneysling will always remain a free platform, but as we grow, we are looking to add paid subscriptions that allow users to become verified or featured,” he says as we conclude our chat.
