Ask HN: What would it take you to join a funded startup that doesn't have a MVP?

[kamfc]

If I have a startup that's been funded with up to $1,000,000 but no MVP, what would it take for you to join given I do have a detail mock-up / blueprint? E.g., money, job security, environment? I want to build a technical team after some of the top 500 e-business agreed to be early adopters through connections.

[davismwfl]

Not having an MVP doesn't bother me (or most people I can think of) as long as funding and a plan are in place (not based on lots of future promises). For example, I would never join a startup who has $50k in cash and promises for future money if X and Y are done. The reason is simple, I've seen the X and Y goals get moved on founders too often then everyone is screwed. Of course, it is different for founders/co-founders as it isn't rare to take $50k to prove something out then raise more money, but that isn't something most non-founders can accept as reasonable risk.

To be a bit more specific assuming you have actual cash in bank. Primarily the most important thing would be transparency about how much money there is, what the runway looks like and what's the plan to raise more. Transparency here would also have to inspire me that there is enough demand/support that the next round is possible and the product actually has some early traction even as just mockups.

Beyond transparency in all the aspects. Probably in order for me, I'd have to see a reasonably solid product idea, market and basic plan on how you plan to get from now to the next level and then the guesses how it goes from there on. I think most people in startups know anything beyond the first few months this early would be hard to predict, but knowing you have a plan is important. Along with this, understanding your experience and skills would be important.

After that it would boil down to a fair and real stock option offer on the table, not a 0.5% type situation, and some reasonable compensation.

I view finding people for early hires as not much different than wooing an investor, you need to convince those first few people you have a plan and can execute on it (with help of course) to get things moving forward.

Given where you are too, another option is forgo any employee hiring immediately and hire a consultant to create the MVP which can help you gain a little more traction and then start looking for employees as you get more funding.

[kamfc]

1. Solid product idea 2. Business strategy 3. Founder's skillset

Thanks. I'll refer back to this as the development progresses.

[davismwfl]

If I ranked my priorities.

1. Complete transparency, 2. Solid business strategy, 3. Founders skillset, 4 Product idea.

I'd put "product idea" last only because if you have reasonable funding and are solid on the first 3, you'll figure out the product. Also with #3 it is really the whole team, but given founder(s) are probably the only ones in initially I say Founders skillset.

[joeblow9999]

how does one even get funding without having an MVP in place? just a detailed mock up? honestly, im shocked you can get funded with just a detailed mock up.

[davismwfl]

Two most common ways:

1. friends and family round.

2. Prior entrepreneur with a known or provable solid track record.

My guess for OP is #1 given the question, but maybe not.

Also, this actually used to be a fairly standard way to raise capital 20 years ago, you'd go to angels or other high net worth individuals with a basic business plan and pitch deck and raise on an idea and team. You might have mock ups (or non-functional prototypes) and/or a really basic product started but rare it would even be classified as an MVP in todays terms.

[kamfc]

Kevin Hale did a video on Startup Ideas and in it, he mentioned some of the business (wufoo, reddit, etc) that got into Y Combinator and/or received investment just with an idea without writing any code at all. So it does seem possible even if you're not an outlier. https://www.youtube.com/watch?v=DOtCl5PU8F0