Securing financial backing for your startup is not as easy as it may seem. Careful planning and an organized approach are vital to your ability to raise funds for your venture. Fortunately, you can increase your chances of successful fundraising by following a few important steps. Below are six key tips you really need to know about fundraising.
1) Do your homework.
Know your fundraising audience and tailor your presentation in a way that captures their attention. Also, make sure that you use language that is appropriate for potential investors. For instance, refrain from using language that is overly complicated with investors who lack a technical background.
2) Keep your presentation informative but concise.
Make sure you cover key points such as your mission, your marketing plan, your financials, and your primary competitors. A good rule of thumb is a presentation that is between 30-60 minutes and consists of 15-20 organized slides. Check out our article on what your Pitch Deck needs to look like here
3) Do not arrive empty-handed.
Distribute your presentation before your meeting to give potential investors a chance to review your pitch in detail. Follow up by bringing copies of your presentation to your investor meeting. It is also a good idea to include images, graphics, and soundbites to keep potential investors engaged.
4) Target battle-tested experts.
It may initially seem like a good idea to avoid investors who are associated with a failed business venture. However, it is often the battle-tested investors who are able to provide the most helpful advice and guidance.
5) Money isn't everything.
An investor's cash on hand is definitely important. However, there are other factors to consider. For instance, choosing investors with a good industry reputation is important, as is selecting investors who are able to grow alongside your company.
6) Be prepared to handle questions, objections, and rejection.
Virtually anyone who is considering giving money to a startup will have questions and concerns about your venture. You need to be prepared to handle comments, questions, and doubts that may arise during your presentation. And, while you should always remain optimistic and hopeful, you must be prepared to handle rejection gracefully.
By following the tips above, you will be more likely to connect with potential investors and earn their confidence. Once you have completed your fundraisingpitch, make sure you do not forget to ask for funding! If you'd like to talk about fundraising and the services we could offer contact our team of experts today - we'd be happy to help.