Fundraising Tips
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.
Most founders are raising funding for the first time.
They often miss the nuances that come from experience.
For the second go-around, founders are often much smarter about the process.
Here are some fundraising tips from those who have done it:
Start your outreach to investors six months in advance of actually raising funding.
Put your investor network on alert that you will be raising funding in the near future.
This makes it easier to set up pitches when the campaign kicks off.
Practice your pitch with existing investors well before you approach the most important ones.
Make sure you have practiced it and had enough questions from the initial investors to work out the kinks.
Show investor validation of your fundraise.
Make clear that other investors are reviewing the deal, and some have already come in.
This signals there is competition for the round.
Choose investors based on their fit to your business first, and valuation and terms second.
The valuation and terms are short-term negotiating points.
A good investor-founder fit will be a factor throughout the life of the company.
Consider these tips in your upcoming fundraiser.
Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.
Let’s go startup something today.
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