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Crowdfunding or VC funding

By Aarushi Goel on 13 Comments / 2769 views

Hello all,
I am in the process of setting a start-up. So far I have:

  1. I had filed for a Provisional Patent in US and successfully got approval

  2. I have samples created

  3. I have spoken to manufacturers and suppliers and have created a cost sheet to understand my revenue.

  4. Created a website that could accept pre-orders: www.tomkeypillows.com

  5. Currently working on creating buzz via social media

Being a new entrepreneur, I am a little lost and need some guidance and have few questions that I hope can be answered:

  1. Company registration? Do I need to register my company right now or I could once I raise money?

  2. LLC or INC?

  3. To raise funds at this point in time: should I run a crowdfunding campaign or start contacting venture capitalists?

Am I forgetting something obvious?

Thank you!

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13 Comments

  1. Hi Arushi! Couldn’t find much on webpage. If this is really about pillows, crowd-funding might be a good place to start.

  2. hey arushi,

    i agree with rishi!

    nowadays a lot of people have done reasonably well by going the crowdfunding route. use the search engine here and you will get a lot of info on crowdfunding –

    https://www.therodinhoods.com/forum/topics/my-experience-with-crowd-funding

    write to me asha@rodinhood.com if you need to help in sorting out the e-com part. i can connect with the zepo gang or sellmojo (they power facebook stores) – rockstar rodinhooders who will help you! 

    also, the co-founder of thehotstart – rajat das is a rodinhooder.

  3. Hey Aarushi, So i am guessing that since you have filled a patent in US, you many want to register your startup in US itself, i will suggest you that you should read this post on how to do that easily https://nikunjagrawal.tumblr.com/post/73082617094/incorporating-a-us-company-as-a-foreign-national

    Answering you 1st question: Its always better to have your startup incorporated if you are looking for a VC funding (because you will have to do that once any investor agree to fund you, so do it anyways)

    2nd: Above blog post will answer your question on which type of company incorporation you should choose. But i will prefer you incorporate in the state of Delaware as a S-Corp. But do talk to a Lawyer first there (Hire a lawyer to do that, Ryan Roberts is the best option, lemme know if you want to connect to him, i can write an email).

    3rd: About funds: If you have few pre-orders, i can suggest you to go for an angel investor with their feedback and see what shapes up. Or if you want to create a wave around your product, do a Crowd funding in partnering with some Digital agency who can help you spread it. [OR the best is always a mixture of both, build a prototype which you already have, get an angel on board and then do crowd funding to get pre-orders]

    This is what i would have done 🙂  

  4. Thank you Asha for the links.

    I will need to figure out the e-commerce piece soon and will e-mail you.

  5. Thank you so much for Veer for such a detailed response. The link was extremely useful.

    1. I am a US citizen who has recently moved to India but I was thinking of registering my company with the state of Delaware. If you could connect me with Ryan Roberts that would be great as I have bunch of questions.

    2. About funds: I don’t have pre-orders yet. How do digital agencies work – do they ask a fixed fee or commission based? Any recommendations for digital agencies I can contact?

    Thanks!

  6. Anytime Aarushi. Sure so Ryan is a good friend and i will connect you to him. Can you share you email with me? I will do the intro. About Digital agencies, there are few in India itself who help startup at every stages. I also know a few who can be of great help to you, l do a email intro with them aslo 🙂 

    Just share your email. 

  7. I have sent you a friend request and shared my email address

  8. aarushi – if you take a quick look at our digital section – you will come across a lot of rodinhooders who run digital agencies.

    use the search to look for abhik prasad, deep malhotra, pawan deokule, abey john and lots more!!

  9. Hey, Thanks Asha 🙂

    Aarushi, This looks interesting, especially considering the fact that we had a baby 6 weeks ago…Could you share some pics of the prototype if possible.

    If you are based in Gurgaon (or delhi) give me a call at +91 9999 334 995 or abhik@experiamedia.com

    Cheers

  10. Thanks Abhik for sharing your contact info.
    I based in Saket, New Delhi. I do have a prototype ready – would e-mail you few images by Monday.

  11. Thanks Asha!

  12. Hey Aarushi, Do check as Ryan has replied to the email intro i did. Take it forward. 

  13. Thanks Veer. I already did and he responded! LLC it is

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