Your Fundraising Growth Story

Your Fundraising Growth Story Pt. 2

1 min read  Your Fundraising Growth Story Pt. 2: What’s Your Story?

When founding your startup, it is important to have a growth story.

While investors may invest in teams and technology, they’ll still need to see your operating cost model, how you are finding customers and how much they pay for your products and services.

If you’re bringing in a lot of money, the investor will assume that you do have a story to tell.

These investors will look at your business model to see how much you can grow as well as what challenges you’ll face and at what point.

If your company is low revenue or pre-revenue, you can show in economic units the proven and repeat business you have.

If you haven’t already, take out $5K and prove the unit economic model. Let’s say you can get a lead paying $1 for a social media ad.

You then send follow-up emails which give you one lead out of fifty. Your lead then spends an average of two hundred and fifty dollars for your products or services.

You can then take these numbers to come up with a basic financial model. It tells how much it costs to get a customer and the value of the loan.

Knowing your numbers and being able to tell investors how you’re growing is a key to fundraising.

Read more: https://tencapital.group/eguide/


Hall T. Martin is the founder and CEO of the TEN Capital Network.TEN Capital has been connecting startups with investors for over ten years. You can connect with Hall about fundraising, business growth, and emerging technologies via LinkedIn or email: hallmartin@tencapital.group

, ,
Previous Post
Your Fundraising Growth Story Pt. 1
Next Post
How to Keep Your Investors Happy

Related Posts

Fundraise Challenges

1 min read When beginning your fundraise, you will quickly find that there are fundraise challenges at every stage. That said, the challenge for each round of the raise can be very different. Seed At the seed round, the challenge…

Five Fundraising Myths Facing Entrepreneurs

2 min read Raising funding is difficult for many entrepreneurs, and there are fundraising myths out there making it even harder. In this article, we plan to bust those myths one by one so that you can start raising funding…

Closing the Investment

2 min read How to Raise Funding Step 7: Closing the Investment After initial interest, the investor often proceeds through due diligence and will ask for documents on your business, including legal entity filings, articles of incorporation, patent filings, tax…