It’s tough running a startup on little capital. One of the biggest reasons why companies fail is that they run out of money. To let your startup grow, raise funding is a skill that you must have.
Always do research on the firm or investors that you’re meeting with. This is an indicator to investors that lets them know how well prepared you are. It’s a no-go if you don’t know your investors’ history or specialties. If you go into meetings well prepared, you will leave a much better impression on the investors.
Get warm introductions
Most venture capital firms won’t even take a meeting with you unless you have a warm introduction. Build a strong network with people who can help you to raise funding. Contact business angels, who can refer you to a firm or go to startup events to meet new people.
Don’t only pitch, be human and connect
Too many entrepreneurs fail by trying too pitch to hard and push their companies by investors. At the end, investors are human, and they have to sit through long meetings with several entrepreneurs. It’s important that you understand this, so you can be a breath of fresh air to them. Usually it takes many meeting to get to know investors well enough to partner with them and get funding.
Have a clear vision
Even if you have the greatest team or product, nobody will know unless you articulate it. It’s your responsibility as the founder to effectively communicate why your team will succeed. Also notice the competitors’ advantage. If your startup doesn’t have competitor’s advantage your business is probably easily to replicable. Develop an edge and hone it.
Tell a story
One of the most important points of being able to raise funding is to build a story around why your are creating the product. The investors have to understand on a deep level what motivates and drives you. You need a compelling story behind the product. Without a story, it is difficult for investors to really understand your product You want the investors to be cheering for you so much that they want to join you and be part of the story.
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