Why do most startups fail?
First-time founders often lack the experience required to navigate the path to building successful businesses.
This causes them to skip steps or run into issues that experienced founders can avoid or overcome.
Many startups focus too much on building their product that they end up creating something that no one wants.
This causes them to spend a lot of time and money, only to realize the lack of demand afterward.
Many new ventures struggle from not having access to the right amount of capital at the right time.
This causes new startups to either not have enough funds to operate or overspend as they advance.
Many new founders either try to go at it alone or bring on the wrong initial set of team members.
This can cause the founder to get overwhelmed or slow progress due to poor team cohesion.
Many startups focus on growth without defining a business model that will be sustainable.
This causes them to be reliant on investors to continue operating, rather than becoming self-reliant.
But it doesn’t have to be this way!
Introducing… The Lights on Lab Startup Factory
It all starts with an idea
Maybe you were born to become an entrepreneur, or maybe you just came across a problem that needs solving.
Either way, you start with an idea but you still need a plan!
We created the factory to partner with people who have great ideas but don’t have the time, experience or capital to execute on their own.
We fill in those gaps as needed to co-build and launch ideas!
Then comes the search for traction
With the initial idea vetted, now comes the search for traction. Just like in racing, when the “rubber meets the road”, it takes some time to achieve traction so that the car moves forward.
The next section of the factory works by taking the idea and running it through a series of processes to gain traction with capable people and capital behind them.
Now it’s time to scale
With traction achieved, it’s now time to grow the business.
We will now put in place a formal operations team, additional capital if needed and a growth plan for the team to execute with the goal of hitting our $5 million dollar valuation milestone by year 3.
“Before everything else, getting ready is the secret of success.”
– Henry Ford –
Founder to Fit
The majority of new startups fail because they build a product that no one wants. In addition, most new founders spend too much time and money to build these products only to fail when they can’t find enough customers to purchase them.
It doesn’t have to be this way.
Founder to Fit provides you with a proven path for achieving product market fit. The goal of this program is to take your idea up to where it’s ready for a formal seed round investment.
We will take you from idea to $100k in revenue within 12 months, a goal of at least 200 paying customers and at least 85% positive feedback on the core features of your product or service.
At this stage our Fund will commit up to $50,000 for those projects that we feel are a fit for us. Full disclosure, the investment ratio is about 50-1 at this stage.
To paraphrase Steve Jobs, “I’m always amazed how overnight successes take a helluva long time.”
– Verne Harnish –
Founder to Five
Achieving Product/Market fit is only one piece of the journey. The next step is scaling, which brings with it new territory and a host of new other challenges. For those who make it through our Founder to Fit program or meet our minimum criteria for a formal seed investment can now pitch their projects for this “accelerator” program.
Growth requires capital. It requires building a team and establishing systems to…
- Generate increased demand (sales and marketing)
- Create and deliver your product (operations)
- Manage cash flow and profitability (finance)
This is often unchartered territory for new founders as now the “honeymoon” phase is over and it’s time to go from startup creation mode and into a more formal operations mode which is where about 80% of most businesses fail. We created this program to bridge the gap between product/market fit up to an A round of formal funding.
The Founder to Five program will provide teams with up to $500k in capital, access to the best people to fill in the gaps in personnel or management, and the proven processes to scale up to a $5M valuation within 3 years.
We have our own Venture fund as well as dozens of other venture partners ready to invest in our projects.
We DO NOT WRITE CHECKS to Entrepreneurs. The only investments we make are for those projects that are in our Studio model.
Contact The Lights on Lab