Startup Funding Espresso -- Awareness, Interest, Desire, Commitment
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Running a fundraise with investors is similar to running a sales funnel with prospects. You must take the investor through the stages of awareness, interest, desire, and commitment. Here are the steps you need to take: Stage 1: Awareness \u2013 identify and contact an initial list of investors. Start with an ideal investor profile. Categorize them by type, revenue, and sector. Create a list of investors and set up your task list to add ten investors per week to the list when contacted. Continually add to this list and consistently reach out to potential investors daily. Stage 2: Interest \u2013 build interest in the investor by providing updates showing a growth story. You must do more than forecast a growth story, you must demonstrate it happening now. Set up a mailer template and distribution list and schedule a date on the calendar to send out two mailers per month.\xa0 Stage 3: Desire \u2013 demonstrate momentum in your fundraise and create some desire on the part of the investor. Continue adding investors to the funnel and sending mailers 2 times per month. Show how other investors are in the deal. If you have a lead, then highlight the lead investor and how they set it up. Make clear why that investor invested in your deal. Include in your bi-monthly updates to investors, the interest committed and invested amounts showing steady progress to the fundraise goal.\xa0\xa0 Stage 4: Commitment \u2013 open the dialog about investing interest and get specific. Ask what is interesting, what diligence is required, what commitment, etc. Once they commit, ask them to sign the term sheet as funding is contingent on passing due diligence. Use DocuSign so it\u2019s easy to fill out the forms, sign, and return. After signing the term sheet, ask for the investors\u2019 diligence process, and provide the appropriate documentation. Fundraising goes in steps and stages just like sales. Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.Let\u2019s go startup something today. ___________________________________ For more episodes from Investor Connect, please visit the site at: \xa0 Check out our other podcasts here: \xa0 For Investors check out: \xa0 For Startups check out: \xa0 For eGuides check out: \xa0 For upcoming Events, check out \xa0 For Feedback please contact info@tencapital.group\xa0 Music courtesy of .