🌱 Is Seedstrapping right for you? Self-assess in 3 minutes
Find out fast whether Seedstrapping works for your idea... before you waste time trying to raise the wrong type of funding
“The biggest funding risk?
Raising money before you’ve proven what works.”
Hi Seedstrappers 👋,
This issue dives straight into the next logical question after last week’s Seedstrapping 101 primer:
“How would this really work for my idea?”
Below is a quick-fire self-assessment you can skim in under three minutes.
If you’re mostly yes, Seedstrapping is likely a great fit. If not, I’ll give you some tips on what might work instead.
Does Seedstrapping fit your plans? ✅ / ❌
Tick “Yes” for everything that feels true today (or will be within three months).
1. Team & skills
Solo, or less than 3 people who can ship a revenue generating Minimum Viable Product themselves (code, no-code, or freelance budget not more than ~£15k)
Why it matters: Lean teams keep burn low and decisions fast.
2. Product complexity
First sellable version requires no significant R&D, hardware, or lengthy regulatory approvals.
Why it matters: “Good-enough” is chargeable sooner.
3. Cost to first revenue
I can land my first paying customers for less than £100k total spend (ideally less than £25k). Early service revenue can be a hack, more on this next week.
Why it matters: Early cash covers costs and proves demand.
4. Market dynamics
Can initially serve a niche in the market, is B2B, or fragmented market; no winner-takes-all expensive growth war necessary.
Why it matters: You don’t have to outspend VC-fuelled rivals.
5. Unit economics
Greater than 50% gross profit margin at an early stage and Customer Acquisition Cost (CAC) is manageable with organic/low-paid channels.
Why it matters: Healthy early margins fund growth.
6. Founder wealth creation
I’d rather own 60-90% of a £10m exit vs 5% of a £500m moonshot.
Why it matters: Seedstrapping maximises founder control and founder wealth.
7. Use of capital & angel alignment
I can use small amounts of capital to drive revenue and profit. Either one larger round to scale something proven, or a series of small rounds matched to my progress
Why it matters: Angels get faster returns and bear less of the risks of dilution that early stage investors can suffer from in VC-backed companies.
Score yourself:
6-7: Natural fit, get going.
4-5: Probably viable. Shore up the “No” areas.
3 or fewer: Keep reading: red-flag territory ahead
Quick favour - what’s your score?
Hit Reply with the number of boxes you ticked Yes (just type “4/7” or “6/7”) and any comments you have.
I’ll share (anonymously!) the most common stumbling blocks in next week’s issue.
“Early profit is the loudest pitch deck you’ll ever need for Seedstrapping.”
Red flags for Seedstrapping? 🚩
Here are some business models, markets and product strategies that aren’t a good fit for Seedstrapping.
1. Deep-tech that needs years of R&D before revenue
No revenue for ages, cash burn is too big. Same goes for hardware products.
What might fit better? Grants, specialist funds, staged VC.
2. Regulated fintech / med-tech / hardware
Compliance & tooling take years and cost six figures up front.
What might fit better? Blend of non-dilutive cash + strategic investors.
3. Consumer product that requires a massive network effect
Needs huge subsidies until critical mass.
What might fit better? Classic VC or a community model.
4. Ultra-low profit margins (e.g. advertising)
Meaningful profit appears only at huge scale.
What might fit better? Revenue-based finance or Private Equity-style investors.
5. “Must be a unicorn” mindset
Blitz-scaling prioritised over maintaining founder control and lowering risks.
What might fit better? Be an informed consumer of VC - or shift ambitions.
Score yourself:
If two or more red flags here shout “that’s us!”, either:
(a) adapt the plan (de-scope, find early revenue, seek grants) or;
(b) embrace a VC fundraising journey with eyes wide open.
“Traction buys freedom; capital just buys runway.”
Next week
“How to land your first £1k without writing code.”
We’ll cover pre-selling, services revenue, concierge MVPs, and other creative tactics that could immediately extend your runway.
Tim
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