Building a tech business is a multidisciplinary problem and requires people with very different skill sets. You don’t just employ a plumber to build you a home, you need an electrician, a carpenter, a tiler and a whole range of trades and software is no different. To get your tech business off the ground, BlueChilli will “lend you” a full product team containing awesome people with all the skills required to build the startup. As the CEO you remain in the driving seat and are responsible for the development budget, scope and delivery timeframes.
Note the word “lend”. Equivalent to employees, your newly formed business is required to pay your product team to build your business software. BlueChilli’s investment however means that you pay a heavily discounted rate, meaning that we are effectively contributing cash to get your business off the ground. For every hour incurred in your business, the business carries a portion and we carry a portion. Once in the marketplace, BlueChilli will assist you in recruiting your own development team who will cary the business forward with you. This means we have the right people with the right skill sets at the right time.
The advantage here is you get the benefit of a well formed and scalable product team who are very good at building things quickly. Once you enter in to product iteration and support phase of your business (i.e. after you’ve launched, tweaked the model and have a Commercially Viable Product (CVP)) then it makes sense to transition to your own full time developers.
Every business is different and has different technology requirements to get the business to a product in the market. We generally recommend that you source at least $30k to ensure you have sufficient budget to get you to a launched product plus allocating resources to marketing and sales after launch.
Generally, BlueChilli does not directly assist in raising seed capital in your startup, so you are required to source the initial capital from your existing network. This forms part of our founder evaluation too, we’re looking at your ability to raise capital and “sell” the business concept to investors in the early days. BlueChilli’s Venture Capital arm then provides financial assistance in later stages of your business development.