Startup Funding Espresso -- Raising Funding Is Hard
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Raising a fund is hard.\xa0 Aside from sales, this is one of the hardest things to do in a startup. Here are a few points to remember in your fundraise: Build relationships first and find investors second. Divide your raise into tranches and give yourself a reasonable timeline for each tranche. Investors will critique the business. Consider your business as an operational machine with the investor showing how to make it better.\xa0 Perform as much diligence on the investor as they are performing on you. Investors follow a common funding strategy and will run in a herd-like manner. Get a sense of which way it is going with your deal and adjust your approach. Just as you tailor the sale to the customer, so tailor your pitch to the investor. For example, do they appreciate impact deals? Do they want to see strong traction? -- adjust accordingly. Start meetings with those you know and can give you real feedback as this will be useful later with other investors. If your deal is complex or in an unknown sector, then use analogies to help them understand the value of your deal. It\u2019s a process -- for every 10 prospects you\u2019ll get 8 \u201cNos\u201d, 1 maybe, and eventually 1 \u201cYes\u201d. Keep going \u2018til the money is in the bank.\xa0\xa0 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