The high-entry barrier business is where VC actually makes sense. Building a webapp and getting $3M VC money is a little bit of a waste. Building a rocket or a jet requires $100M and there's no other way around it. You're maybe somewhere in between. Or start small. Maybe in a different country/province, if you can.
Ask HN: How to start a startup that requires a high amount of initial capital?
11–20 of 91 posts
Re: Ask HN: How to start a startup that requires a high amount of initial capital?
#12adplexity.com - 5 million USD revenue.
Better launch a new product first, make revenue like the product i posted and use that money to fund your big business.
Re: Ask HN: How to start a startup that requires a high amount of initial capital?
#13You convince an investor to fund you with research (aka expertise)
Re: Ask HN: How to start a startup that requires a high amount of initial capital?
#14you can rent a licence, there are many banks doing that in EU. I think you need to do a better research..
Re: Ask HN: How to start a startup that requires a high amount of initial capital?
#15I have looked into this area. The best way to do it is to partner with an existing bank. You wouldn't need payment processor license which would likely be very costly.
Re: Ask HN: How to start a startup that requires a high amount of initial capital?
#16Can you buy an existing bank that is already licensed?
Re: Ask HN: How to start a startup that requires a high amount of initial capital?
#17I have looked into this area. The best way to do it is to partner with an existing bank. You wouldn't need payment processor license which would likely be very costly.
Must say its a difficult task to convince banks to partner with you.
Re: Ask HN: How to start a startup that requires a high amount of initial capital?
#18I have looked into this area. The best way to do it is to partner with an existing bank. You wouldn't need payment processor license which would likely be very costly.
Must say its a difficult task to convince banks to partner with you.
In Pakistan, Finja did the same.
http://www.finca.pk/news/finca-launches-pakistans-first-ever...
Re: Ask HN: How to start a startup that requires a high amount of initial capital?
#19Disruption. Begging for forgiveness instead of asking for permission. You can see it in many major players that got their start by going around regulations. Once you are onto something, the regulations can be satisfied by backers who see a business plan, cashflow from the side of the business, or perhaps new regulations will form around the new company's business model.
That's too big a risk. Its just begging one phone call from a competitor to the authorities to wreak havoc on the startup. This strategy could work in yet uncharted territories (crypto comes to mind) but not in traditional systems like banks in this case.
Re: Ask HN: How to start a startup that requires a high amount of initial capital?
#20Partner with a bank. Or get a hedge fund to buy a bank shell, have it as an asset, and use that bank. If your startup fails, they still have the asset. Or you may just need to have access to 13M, it's probably not the fee. So - you can just borrow 13M and use the 13M as collatoral. If you structure the deal right, it's 100% risk free. Moreover, you may be able to invest the 13M in which case you can still return an i…
> So - you can just borrow 13M and use the 13M as collatoral
wouldn't OP need equivalent collateral to borrow 13M even?