Many start-ups seek investment or grants to fund their operations. But Cheng, who previously worked at early-stage investor Savannah Fund, decided to bootstrap Moringa School by using her own money, particularly during the first few years. In this (slightly-edited) excerpt, she explains the reasons for following this route.
“What I realised pretty early on, especially when I was working as an investor, was that a lot of companies seek funding too early. Essentially a lot of entrepreneurs were giving up huge chunks of their companies because they either weren’t showing enough traction, or they didn’t have as many customers… I was realising that a lot of these early-stage investors weren’t giving good deals.
“What I wanted to do was to prove that our solution is something that the market wants. I mean grants are fantastic, but a lot of the times, these grants are more distracting than helping an entrepreneur find focus.