Many startup ideas arise when someone sees a need that isn’t being fulfilled. The need for husband and wife, Adi Tatarko and Alon Cohen, came from a lack of options when designing their own home. They could not find anywhere for ideas so they created Houzz.
Many people have ideas and they often stay just that. However, this team had a vision and wanted to turn their dream into a reality. One reason why some ideas never come to fruition is because of a serious lack of funding. No matter how great an idea is, it doesn’t stand much chance of success without the capital to create it. Houzz launched in February 2009 and it wasn’t until November 2010 when they received a vital $2 million in financing.
If you’re starting a smaller business, it is possible to start on a very tight budget. The vision of Houzz required funding, and the concept was strong enough to encourage investment. Houzz received an additional $11.6 million in financing in December 2011 and a huge $35 million January 2013.
The interesting thing with funding is that to get further funding, you need to use your first lot of funding effectively. If Adi and Alon did not have an effective plan in place for the initial $2 million they received, they may not have received the $11.6 million, and most certainly wouldn’t have been trusted with the huge $35 million in financing. It is worth noting that many start-ups will require much less financing to be successful, so do not let these figures discourage you from pursuing your own venture.
Check out this infographic from Half Price for more information on how a startup became the biggest home design platform in the world. We hope you find it useful.
Do you see any needs that aren’t being fulfilled right now?
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