When you first raised VC, what did you plan to spend it on and how did you actually spend it?

Hyung Moon
5 replies
We are planning on spending half if not the majority of our funding to marketing but to be honest. We are all drawing a blank at how to optimally budget/spend the funding. Would love any insight and advice PH community has to offer!

Replies

Akram Quraishi
Well, never raised VC money. Being a bootstrapped startup, we think twice about spending our marketing budget. I would say, take it slow, run just one or two experiments first, and based on the results you can scale up the spending.
Hyung Moon
@akramquraishi I appreciate the feedback! I am curious if you have cross referenced with any of your peers in the industry in how it compared. We were considering spending a small but significant chunk of our marketing budget to advertise every facet of the problem we are looking to solve and how our app/service provides a solution. Then analyzing the data from the first round of widespread ads and doubling down on only the ads that brought us the best results. Kind of a throw a lot of money at the wall and see what sticks strategy but *shrugs* haha would love to pick your brain on what you think of this if you can spare some more time for us!
Daniel Baum
Invest in the team. A business is only as strong as its people. Lots of marketing can be accomplished with low spend, high effort initiatives (like posting in PH, Reddit, blog posts, etc). Also make sure you have a good legal foundation and proper accounting practices. Its worth it.
Gaurav Goyal
We only spent VC money on 2 things: - Building a solid team. This will give you long-term results. - Marketing in short-term But super important to remain lean and frugal :)
Hyung Moon
@gauravgoyal_gg That really breaks it down into two main focuses, short term and long term. I appreciate you taking the time out to relay that to me and YES completely agree flexible and frugal is our baseline hahah