You Need to Boost Users First and the Money will Follow?

Scaling Up or Monetization 

You Need to Boost Users First and the Money will Follow?

Scaling Up or Monetization

A common startup dilemma is whether you use the limited funds you have to scale up or concentrate on monetization and revenue first. Is it easier to monetize a startup which has scale and traction as opposed to a startup with few customers? Ideally, a startup should do both - monetize and scale up.

All those who develop apps or platforms need to deal with how to spend their funds and whether to monetize first or to market and build up their user base. If an app or platform is gaining traction then presumably it means that users are happy with their experience.

Before most VCs invest, factors they will look at include traction – how many downloads or visitors you have – and revenues. Which is more important to a VC? Will a VC prefer to invest in a startup that is gaining traction or one that has some revenue?

Is it true that if you get users first, the money will follow?

DigitalAsian