How to Raise Funds for your Startup
As an Entrepreneur, there are few factors that are incredibly important to keep in mind before making your pitch to any Investor. Here are those factors:
Build an Investor Portfolio
You should take enough time to figure out who the likely investors in your Space and in your Region are going to be. Then lay all those contacts out and figure out where you have mutual connections with the investors. Whether they are Angel Investors or Venture Capitalists, you are ten time more likely to get a response from someone who has a mutual context.
Get yourself acquainted with the Industry you are venturing into
Before you start raising money, make sure you know your Industry very well. You should not only know your Business or the problem you are solving, but you should also know who else is out there, what are they doing and how are you different from the rest of them.
Keep it simple
A lot of Entrepreneurs go to pitch Investors and after about 10mins of pitching an Investor, the Investor has no idea of what the Business actually does. As a founder. It’s important to know your Industry to the core, but it’s equally important to make sure that the person on the other end, the Investor, understands exactly what you do otherwise, they are just going to walk away if they don’t get it.
Accept the fact that raising Funds is not an overnight phenomenon
Investors are going to take a while to make a decision on whether to invest in your Startup. So make sure that you think about fund raising as a long term effort and plan accordingly. What Investors like to say is “Am interested, but come back to me when you have a lead Investor.” What they are essentially doing is de-risking their decision. If you are an investor, it’s very easy to want to be the last man in and not be the first person to write a Cheque. What you should do is, get as much interest as you can from different Investors and then get a close. So move forward and instead of waiting for one big lead Investor, just starting closing people and as you start to close investors, you are going to find that other people are going to have fears of missing out and they are going to come join in and end up investing in your Startup.