After recently closing AUD$425,000 in pre-revenue funding from a number of investors, Phil Tran, founder of new deals application DEALZTAP, can safely tell you there is no magic formula to raising early stage funding – it all comes down to hard work and proving that you and your team are the best people for the job when it comes to executing and growing that small idea into a sustainable technology business.
In closing the seed funding for Dealz Tap, Tran like all others with an idea needs to prove they are capable of: execution. Many entrepreneurs fall into the trap of being focused on ‘how extraordinary’ an idea is, and so they forget that investors like to invest in people and teams. After all, without that element of the equation being right, an idea is never going to turn into a viable product or service.
Tran had a long career at IBM before taking the leap into the world of technology startups. He was aware that a number of deal-focused applications had launched over the past two years within the Australian market, but most have failed to gain any type of significant traction due to the challenges faced by founders in getting the general public to become avid users of the product.
With DealzTap ,Tran hopes to buck this trend by offering similar mapping technology that Uber uses to help users find the deals nearest to them. The company was founded by Ben Burns, Darcy Kean and Tran, who also happens to be the founder of Bidz Direct, a startup which recently received $400,000 in seed funding.
Obviously it’s not Tran’s first rodeo – but to think securing funding gets easier the second time round is naive. The ‘deals’ market is a very competitive space and Deal Tap is most definitely not the first application of its kind to be using location technology for users to discover deals. However, Tran said that DealzTap has a number of differences that makes it stand out from the crowd.
“What we found is that, traditionally, a lot of coupon magazines are paper-based. As they transition to an app, they’re still very tied down to not only the cost of the paper base but are restricted and limited by the paper base addition, so if a retailer wants to put in a last minute deal, they can’t, they have to wait for the next edition because their app reflects what’s out there in the printed version. We don’t have that overhead, we don’t have that cost, we don’t have printing costs and people can put in deals at the last minute or upfront at the end of the month, and it’s very flexible,” Tran explained.
“The biggest challenge for us is probably thinking of smart ways to get the app into every pocket.”
Tran is a member of The Entourage, Australia’s largest educator and community of entrepreneurs. The organisation offers many entrepreneur courses to its students in addition to a series of focused workshops and weekend courses on specific topics, like its upcoming Capital Raising Workshop: on the 26- 27th of May.
For this two-day workshop, The Entourage is bringing together some of the country’s most prominent entrepreneurs and investors who have real been-there-done-that experience building companies with a combined value of over $6 billion. Speakers include Peter Davison (seed investor in PayPal), Matt Rockman (co-founder of Seek.com), Megan Quinn (co-founder of NET-A-PORTER), Reuben Buchanan (managing director of Axstra Capital), and Jack Delosa (CEO and founder of The Entourage).
Many startups and small business owners list access to capital as being their number one barrier to growth.While capital certainly plays an important role in the growth of any business, raising money from investors is still one of the most misunderstood skillsets across the Australian landscape. That is what this two day workshop will aim to demystify and more importantly it will help you understand the exact steps to become investor ready.
Here is what attendees of the workshop will learn:
- Be guided through the exact steps to make your business investor-ready
- The key strategies to de-risk your business to make it attractive to smart investors
- Determine the key value drivers of your business and maximise the valuation
- Deep-dive into the psyche of investors, what they look for, what turns them off, and how to communicate beyond just the “pitch”
- The core strategies used by the world’s top entrepreneurs to build and scale successful businesses
- $2,500+ in Bonus content
If you are looking to raise capital to fund growth in your business, The Entourage offers a four month intensive Scale Program to help you to build significant value in your business, learn the process of capital raising and prepare your business for expansion. Click here to register your interest.
Featured Image: Phil Swoopy Tran | Source: Provided