Ideas and talent alone do not always make money. Unfortunately, most often, you need money to make money. The big question is how much money is really needed to start.
Entrepreneurs today have the notion that a good idea necessarily means that they need to find deep pocketed investors to fund them even before they have anything to show; they cannot be blamed for this notion as the past few years have seen ideas, let alone companies, getting sky high valuations from investors based on projections which would confuse even the best business analysts.
This model of investment has not only makes some entrepreneurs complacent about their responsibilities and roles (due to lack of experience, guidance and direction with the sudden influx of money) but also increased the financial risks and losses to investors. The complacency of the entrepreneur and the pressure for returns on investment by the investor often cause the venture to fail .
The law of averages does sometimes pay off for the investors but unfortunately there is no protection for the failed entrepreneur who, with the aspiration of a successful venture and desperation due to lack of funds, often ends up giving up on a very large share of their company ignorant of the real value of their idea.
A large portion of the pre-seed investment made for converting ideas to working prototypes, which starts at $10000 upwards, is spent on infrastructure and equipment required to develop the proof of concept. This amount averages about 70% of the invested money, and goes up to 90% in some cases.
The fact of the matter is that to convert most ideas to prototype, a large investment in the form of knowledge, talent and time from the entrepreneur is required at a space fully equipped with all the facilities necessary to metamorphosize the idea to a prototype, with a financial investment of around $2000 from an investor which would cover all the components and usage of facilities and equipment.
When a Dhi $2000 Investor invests pre-seed funds with a company which we incubate, you start with these three core advantages in addition to a lowered financial risk:
- You invest in a startup where the entrepreneurs and the idea are vetted from all techno-commercial angles by industrial experts for the investor to make an educated decision.
- Dhi Bridge is a focused incubator with mentors from the industry to help entrepreneurs when they require technical help or assist in accelerating their development process through knowledge transfer. This helps the entrepreneur stay focused and progressive.
- Dhi is the first incubator to offer investor mentoring, this is done to educate the investor and help you make investments in line with your investment appetite.
When you turn a Dhi $2000 Investor, you not only invest in a startup with vetted credentials, but you also enter early, reduce your risk, and have professionals overseeing your investments who care about the success of these startups.