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John Mullins

Who?

If you’re an entrepreneur at any stage of your journey, or even an aspiring one, and you need money to start or grow your business, this course is for you.

What?

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Who?

If you’re an entrepreneur at any stage of your journey, or even an aspiring one, and you need money to start or grow your business, this course is for you.

What?

This course will introduce, and help you put to use in your startup, the five models through which your customers can – and will, if you ask them! – fund your business. These five time-tested models have been put to use by entrepreneurial superstars like Michael Dell, Bill Gates, Richard Branson and more. Sadly, though, the five models are rarely talked about and not widely understood. Until now! The five models will be brought to life by the real-world stories of an inspiring collection of incredibly creative entrepreneurs from around the world – including successes and failures – through a series of captivating no-holds-barred interviews with founders and others, and investors, too.

Why?

More than two generations ago, the venture capital community – VC’s, business angels, incubators, and others – convinced the entrepreneurial world that writing business plans and raising venture capital constituted the twin centerpieces of entrepreneurial endeavor. They did so for very good reasons: the sometimes astonishing returns they’ve delivered to their investors and the incredibly large and valuable companies their ecosystem has created. But the vast majority of fast growing companies never take any angel or venture funding. Are they onto something that most of today’s entrepreneurial ecosystem has missed? Indeed, should a business angel or VC be seen as the first port of call for getting your nascent entrepreneurial venture off the ground or growing it faster? Perhaps not.

How?

You’ll be asked to do a series of exercises – out in the real world – to put your growing toolkit to use in your business or the one you hope to start. Hands-on, practical tools to help your business start and thrive – without venture capital. You’ll join our discussion board of fellow participants, if you like, and learn from others who are putting the tools to work, just as you are. And to suit today’s fast-paced lifestyles, we’ve broken what you’ll get – short lessons, interviews, thought-provoking questions, even some optional things to read – into bite-sized chunks, so you can log in and grab them whenever and wherever you are.

And what else?

If, after checking out and perhaps completing this course, you find your company in a position where seeking venture capital turns out to be the right thing to do next, John Mullins leads an inspiring and hands-on executive education course at London Business School – this one face-to-face – called Financing the Entrepreneurial Business. There, among a room full of investors and entrepreneurs, you’ll study a series of captivating real-world cases and learn everything an entrepreneur – or an investor, for that matter – needs to know to handle the person who sits across the deal table and take an entrepreneurial business from start-up to exit. See https://www.london.edu/education-and-development/executive-education/topic/finance/financing-the-entrepreneurial-business#.WIVY_FyTQ-0 for info.

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What's inside

Syllabus

Introduction: Why this course?
A widely-held notion in entrepreneurial circles is that the way to start and grow a thriving business is to come up with a great “idea”, write a great business plan, raise capital from angels or VCs, flawlessly execute the plan, and (Voila!) get rich! But it hardly ever happens that way. In fact, the vast majority of fast-growing companies never raise any venture capital. How do they do it, and how can you do it? This MOOC holds the answer. So let's get going!
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Module 1: Why taking venture capital is a bad idea
Welcome to Module 1! As you can see by the title of this first module, I hope to convince you in this chunk of the course that seeking (and taking) money from an angel or VC investor, at least early in the life of your venture, is an exceedingly bad idea. Here we go!
Module 2: Matchmaker models
Welcome to Module 2! In this module we're going to focus on matchmaker models (sometimes called marketplaces - eBay, Airbnb, and Uber and the like) and how you can put them to work in your business. We'll see examples of both successes and failures and, as in Module 1, we'll get several perspectives other than mine, including that of a VC investor who knows this kind of business intimately. Ready? Let's go!
Module 3: Pay-in-advance models
Welcome to Module 3! In this module we'll see that taking a problem-solving perspective will be useful as we look at how to put pay-in-advance models to work in your business. You're also going to learn from another failure story, this one in India - from rags to riches and back to rags again - as well as travel to Latin America to get the lay of the land there. And you'll see that social entrepreneurs can use customer-funded models, too, even one tackling a problem as challenging as youth literacy! Here we go!
Module 4: Subscription models
Welcome to Module 4! In this module we'll dig into the economics of subscription models, while exploring the key building blocks that underlie many other kinds of e-commerce models, too. Because subscription models have been, in my view, over-hyped, you're going to hear about a handful of failure stories in this module, along with the story of a fast-growing online wine business that's put a subscription model to work in a novel way. Are you ready for this one? Let's go! John
Module 5: Scarcity models
Welcome to Module 5! In this module, we're going to look at the most counter-intuitive of the five models: the scarcity model. You'll get the story of a fashion retailer that's making life difficult for others in its industry, you'll get an extensive advice-laden interview with an entrepreneur who used scarcity to his benefit, and we'll travel to India to explore today's funding environment there. Let's go!
Module 6: Service-to-product models
Welcome to Module 6! In this module, we're going to hear from an entrepreneur who started with nothing in 2003 and sold his business less than 8 years later for nearly $100 million. We'll also hear from his partner, whose entry into the business midway into its journey raised its sights, and from a growth capital investor who backed the business in its later days without actually putting any capital into the business. Why? The customer-funded business didn't need their money! The three sides of a deal - a very special story that will surely inspire you. Here we go!
Module 7: Putting a customer-funded model to work in your business
Welcome to Module 7! In this final module we're going to draw the learning of this entire MOOC together and get started on implementing one or more of the five customer-funded models in your business. And you're going to hear an interview with someone who can get you up to speed in understanding customers well enough that you can get to what is called product-market fit - sooner instead of later! Even better, I'm going to tee up some final questions to get you started on what I hope will be a customer-funded journey that takes you wherever you'd like to go. I'm looking forward to wrapping things up and setting you off on your journey!

Good to know

Know what's good
, what to watch for
, and possible dealbreakers
Explores how to obtain financing for an aspiring business venture through a hands-on, practical approach
Taught by a seasoned executive education instructor from a reputable business school
Provides real-world examples and case studies of successful entrepreneurs who have utilized these funding models
Covers various funding models beyond venture capital, including matchmaker, pay-in-advance, subscription, scarcity, and service-to-product models
Suitable for entrepreneurs at any stage of their journey, from aspiring to experienced
Emphasizes the importance of understanding customer needs and building a strong foundation for business success

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Reviews summary

Helpful resource for funding without vc

Learners say that this well-received course, titled "How to Finance and Grow Your Startup – Without VC," is largely positive and engaging. It explores alternative funding methods for startups, discussing topics such as customer funding and crowdfunding. Students appreciate the interviews with entrepreneurs and industry experts, as well as the practical advice and real-world examples provided throughout the course. However, some students found the assignments to be difficult and the grading process to be unfair.
Provides real-world examples and case studies.
"Amazing content and a must for the person wanting to bet on a startup. Thank you."
"This course was so useful, learning about customer funded business models and the VC world really helps you understand the underlyings of successful entrepreneurial ventures."
"It was a great experience in doing this MOOC."
Features interviews with entrepreneurs and industry experts.
"Well structured with great lectures & interviews to help learn practically"
"Thank-you Prof. John Mullins and Coursera, the course was enlightening in many aspects and the presentation was excellent!"
"Really interesting and helpful ! As technical founder, I wanted to learn how to build a sustainable business around the product."
Emphasizes alternative funding methods, such as customer funding.
"There's great information on how to get your business or idea started without actually having to get any finance from any VC or angel investors."
"This course was so useful, learning about customer funded business models and the VC world really helps you understand the underlyings of successful entrepreneurial ventures."
"Thank you very much for this course. I will change my approach to customers."
Some students found the grading process to be unfair.
"​Assigments are really hard to submit and confusing to follow through or understand. "
"The problem is I complete my assignment but not enough participants are available to peer-review the assignment."
"I have not tried reaching Mullins or the London Business School to somehow take action."
Some students found the assignments to be difficult.
"​Assigments are really hard to submit and confusing to follow through or understand. "
"The problem is I complete my assignment but not enough participants are available to peer-review the assignment."
"I have not tried reaching Mullins or the London Business School to somehow take action."

Activities

Be better prepared before your course. Deepen your understanding during and after it. Supplement your coursework and achieve mastery of the topics covered in How to Finance and Grow Your Startup – Without VC with these activities:
Practice pitching your business idea to potential investors
Practicing your pitch will help you refine your story and improve your ability to persuade others to invest in your business.
Show steps
  • Develop a clear and concise pitch
  • Rehearse your pitch multiple times
  • Get feedback from others on your pitch
Watch videos on how to negotiate with investors
Watching videos on negotiation can help you learn the basics of negotiation and improve your ability to negotiate with investors.
Show steps
  • Search for videos on negotiation
  • Watch the videos and take notes
Attend a venture capital pitch event
Attending a venture capital pitch event can help you learn about the venture capital process and connect with potential investors.
Show steps
  • Research venture capital pitch events in your area
  • Attend the event and take notes
  • Follow up with any investors you meet
Five other activities
Expand to see all activities and additional details
Show all eight activities
Attend a workshop on how to write a business plan
Attending a workshop on how to write a business plan can help you learn the basics of business planning and improve your ability to write a comprehensive business plan.
Show steps
  • Research business plan writing workshops in your area
  • Attend the workshop and take notes
  • Use the information you learned in the workshop to write your business plan
Join a study group to discuss the course material
Joining a study group can help you learn the course material more effectively and connect with other students.
Show steps
  • Find a study group or start your own
  • Meet regularly to discuss the course material
Read Venture Deals by Brad Feld and Jason Mendelson
The book provides practical guidance on the legal, financial, and strategic aspects of venture capital financing. It can help you understand the key terms and concepts of venture capital deals and make informed decisions about funding your business.
Show steps
  • Read the book cover to cover
  • Take notes on key concepts and terms
  • Identify areas where you need further research
Write a blog post about the five customer-funded models
Writing a blog post about the five customer-funded models will help you solidify your understanding of the material and improve your written communication skills.
Show steps
  • Do research on the five customer-funded models
  • Outline the main points of your blog post
  • Write the first draft of your blog post
  • Edit and revise your blog post
  • Publish your blog post
Mentor another student on the course material
Mentoring another student can help you solidify your understanding of the course material and improve your communication skills.
Show steps
  • Find a student who is struggling with the course material
  • Meet regularly to go over the material

Career center

Learners who complete How to Finance and Grow Your Startup – Without VC will develop knowledge and skills that may be useful to these careers:
Startup Founder
Startup Founders are responsible for starting and running their own businesses. They are responsible for all aspects of their business, from developing products or services to marketing and sales. This course can help Startup Founders learn how to identify and solve problems using customer-funded models. They will also learn how to develop and implement business plans and how to manage their finances. This course can help Startup Founders build a foundation for success in their careers.
Entrepreneur
Entrepreneurs start and run their own businesses. They are responsible for all aspects of their business, from developing products or services to marketing and sales. This course can help Entrepreneurs learn how to identify and solve problems using customer-funded models. They will also learn how to develop and implement business plans and how to manage their finances. This course can help Entrepreneurs build a foundation for success in their careers.
Product Manager
Product Managers are responsible for developing and launching new products and services. They work with engineers, designers, and marketers to bring products to market. This course can help Product Managers learn how to identify and solve problems using customer-funded models. They will also learn how to develop and launch new products and services. This course can help Product Managers build a foundation for success in their careers.
Marketing Manager
Marketing Managers are responsible for developing and implementing marketing campaigns. They work with other departments to develop products and services that meet the needs of customers. This course can help Marketing Managers learn how to identify and solve problems using customer-funded models. They will also learn how to develop and implement marketing campaigns that are both effective and efficient. This course can help Marketing Managers build a foundation for success in their careers.
Risk Manager
Risk Managers are responsible for identifying and mitigating risks to a business. They work with other departments to develop and implement risk management strategies. This course can help Risk Managers learn how to identify and solve problems using customer-funded models. They will also learn how to develop and implement risk management strategies. This course can help Risk Managers build a foundation for success in their careers.
Financial Analyst
Financial Analysts help businesses make informed decisions about their finances. They analyze financial data and develop recommendations for investment and other financial decisions. This course can help Financial Analysts learn how to identify and solve problems using customer-funded models. They will also learn how to analyze financial data and develop recommendations for investment and other financial decisions. This course can help Financial Analysts build a foundation for success in their careers.
Venture Capitalist
Venture Capitalists invest in early-stage businesses. They work with entrepreneurs to help them develop and grow their businesses. This course can help Venture Capitalists learn how to identify and solve problems using customer-funded models. They will also learn how to evaluate investment opportunities and how to manage their investments. This course can help Venture Capitalists build a foundation for success in their careers.
Nonprofit Manager
Nonprofit Managers are responsible for leading and managing nonprofit organizations. They work with staff, volunteers, and donors to achieve the organization's mission. This course can help Nonprofit Managers learn how to identify and solve problems using customer-funded models. They will also learn how to develop and implement business plans and how to manage their finances. This course can help Nonprofit Managers build a foundation for success in their careers.
Investment Banker
Investment Bankers help businesses raise capital by selling stocks and bonds. They also advise businesses on mergers and acquisitions. This course can help Investment Bankers learn how to identify and solve problems using customer-funded models. They will also learn how to analyze financial data and develop recommendations for investment and other financial decisions. This course can help Investment Bankers build a foundation for success in their careers.
Operations Manager
Operations Managers are responsible for overseeing the day-to-day operations of a business. They work with staff to ensure that products and services are produced and delivered efficiently. This course can help Operations Managers learn how to identify and solve problems using customer-funded models. They will also learn how to develop and implement operational plans and how to manage their finances. This course can help Operations Managers build a foundation for success in their careers.
Project Manager
Project Managers are responsible for planning, executing, and closing projects. They work with teams to ensure that projects are completed on time, within budget, and to specification. This course can help Project Managers learn how to identify and solve problems using customer-funded models. They will also learn how to develop and implement project plans and how to manage their finances. This course can help Project Managers build a foundation for success in their careers.
Sales Manager
Sales Managers are responsible for leading and managing sales teams. They work with sales representatives to develop and implement sales strategies. This course can help Sales Managers learn how to identify and solve problems using customer-funded models. They will also learn how to develop and implement sales strategies that are both effective and efficient. This course can help Sales Managers build a foundation for success in their careers.
Business Analyst
A Business Analyst is responsible for helping businesses identify and solve problems. They work with stakeholders to understand their needs and requirements, and then develop solutions that meet those needs. This course can help Business Analysts learn how to identify and solve problems using customer-funded models. They will also learn how to work with stakeholders and develop solutions that are both effective and efficient. This course can help Business Analysts build a foundation for success in their careers.
Management Consultant
Management Consultants help businesses improve their performance by providing advice and guidance. They work with clients to identify and solve problems, and then develop and implement solutions. This course can help Management Consultants learn how to identify and solve problems using customer-funded models. They will also learn how to work with clients and develop solutions that are both effective and efficient. This course can help Management Consultants build a foundation for success in their careers.
Consultant
Consultants help businesses improve their performance by providing advice and guidance. They work with clients to identify and solve problems, and then develop and implement solutions. This course can help Consultants learn how to identify and solve problems using customer-funded models. They will also learn how to work with clients and develop solutions that are both effective and efficient. This course can help Consultants build a foundation for success in their careers.

Reading list

We've selected 15 books that we think will supplement your learning. Use these to develop background knowledge, enrich your coursework, and gain a deeper understanding of the topics covered in How to Finance and Grow Your Startup – Without VC.
Provides a framework for building and launching a successful startup by emphasizing the importance of customer feedback and iterative development.
Provides a practical guide to acquiring customers for a startup, covering topics such as marketing, sales, and customer service.
Provides a simple and powerful framework for developing and evaluating business strategies.

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