A lot of entrepreneurs with brilliant ideas often don’t know what they’re ideas are worth. Can you actually get funding with just and idea and is your idea worth anything?
What is an idea worth?
An idea is worth nothing; there is no such thing as a million-dollar idea. It’s worth 0, it’s worthless, ideas are only worth something when they are brough to life. It doesn’t matter if you think your idea will revolutionize the world; it’s still worth nothing.
A lot of entrepreneurs tend to overvalue their ideas, thinking about how someone is going to steal it and how they’re supposed to protect it. Even if people can steal your idea, ideas are only worth something when they’re implemented correctly. People will inevitably copy you as soon as you start anyway.
How do you get funding for an idea?
The problem with ideas is that no one knows the future value of the idea; it’s all just pure speculation. Your idea might be worth hundreds of millions in the future, or it might be a complete flop.
Ideas don’t have shares, you can’t buy shares of an idea, you can only buy shares from companies. And at that point the value of the company will have to be determined. This makes it supremely difficult to get any funding for ideas.
Your best bet is creating a product or a prototype, a product is definitely worth something and its future value is easier to calculate. However, some angel investors and government institutions may give you funding for your ideas but it will be difficult to determine the actual value that the idea holds.
Other investors will not even look your way if the only thing you have is an idea. It’s better to create a product or prototype to better increase your chances of being successful at your attempt to get funding.
The above was a layout of how ideas are funded. Do you have any thoughts or questions? Comment below.