[paskster]

There are a lot of Investors in Berlin. But without Social Proof, it would probably be a waste of time trying to approach them.

If you make about 100k revenue (or if you have otherwise significant traction), you can not only approach investors in Berlin but also ouside, which kind of solves the "Social Proof" problem.

If you are barely selfsustaining, then please stay bootstrapped and grow your business. Otherwise the process of fundraising in Berlin will most likely kill your business.

EDIT: added one paragraph

[canttestthis]

Could you briefly explain how "social proof" applies to startups?

[paskster]

If you have Social Proof, you know you have it. If you are not sure, then you don't have it.

Social Proof could mean: - You are a Serial Entrepreneur - A famous Business Angel invested in your company - You graduated from a University with a great Alumni Network - etc.

Basically if a potential investor evaluates your Market, Traction or Business Model, then you already lost. If a potential investor invests, because he thinks other investors want to invest, then this is Social Proof.

For example you are talking one hour with a potential investor:

If you talk 90 % of the time about who else is investing and about how to structure the investment round, then you have Social Proof. If you instead talk 90 % of the time about how big the market is, what your revenue model will be any why your churn rate only decreased 2 % in the last month, then you don't have Social Proof.

Also if the potential investors talks about making the investment bigger to increase your run rate and increase your leverage for a Series B, you have Social Proof. If instead the potential investors is asking you if you can decrease your burn rate or recommends you to raise a smaller amount, then you don't have Social Proof.

EDIT: Added one paragraph

[wiradikusuma]

I'm in similar boat with the OP and with your comment I feel defeated already, but I guess it's the reality. Thanks for the bitter pill :)

[paskster]

Don't feel defeated. Embrace the fact that you can make it on your own ;)

[anotheryou]

Do you think surviving through side-gigs is a valid way of bootstrapping?

[paskster]

Yes! I think trying to make revenue as early as possible and making side gigs if necessary, is a valid way to bootstrap. But this is just my opinion and this topic should require its own thread, if you want to go into details.

[UK-AL]

Social proof is a catch 22. Social proof is proof of previously being successful(or perceived to be). They want the return of investment to granted as possible. And for that they want previous successes.

But to get those success you need social proof.

It's a hard problem.