Startup Funding Espresso: Anchor Clients

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

Equity funding is just one source of funding for your startup. There are many others such as anchor clients.

Anchor clients are those who prepay for a custom version of your product. They are typically larger companies who have special needs.

If you are building an enterprise or consumer software product, consider looking for an anchor client to pay you to build a custom version of it.  

Anchor clients provide not only funding but also a clear specification of what they want.

They are often in a hurry and want the solution yesterday, which means they will pay the best price.

Anchor clients also give you information about the market as they have researched it and not found the solution they want. They often share such information with you.

Also, anchor clients become good references to use when you launch your standard product into the market.

To fully fund a version, one of your platforms may require more than one anchor client. Take the funding you need to build your platform and divide it by three and look for three anchor clients to cover it.


Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
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