There are many Internet businesses created without money, spending a lot of time and dedicating the best of yourself. They are usually very profitable at mid- and long-term but they have a limited horizon of development. Very good for the promoter but without room for investments. Other models require a lot of money because the model has already been proven in other countries and it is known that the key, for example, is the critical mass of users and you must invest to achieve them. You have to bet on the directing team and then be able to make different rounds of increase in capital until reaching the point of equilibrium. Then, the company rises well and produces a very good return for the investor.
In the middle, there are many companies, the majority, whose model of business is not proven and needs to be tested and tested to find. In this type of company, the key is in not betting too high until the model is understood. This means that you should dedicate a couple of years to reaching this without spending more than a few hundred thousand Euros. If the model advances and people use it, that is when you can push on the accelerator and, with more investment, accelerate the growth in the mass of users and consolidate them as clients. None of these cases are simple and the directing team must be totally convinced of what they are going to achieve.
Translated by Babelic.com
