The key to raising funding is consistency and persistence.
Most startups spend time with investors and then fail to follow up and keep them informed. In your fundraise, when you meet an investor and pitch him, you must have a plan for follow up and keeping them informed.
It could be as simple as adding the investor to a list and sending a regular email update. From time to time you reach out to offer a call or meetup for coffee.
Investors are looking for team and traction so you need to find ways to demonstrate you have a great team and that you are achieving traction.
Traction will look different at each stage
Seed: building an MVP, recruiting team members, raising family and friends funding, identifying customers who will buy a pre-sale version.
Series A: building a robust platform, raising funding from angels and early stage VCs, and closing recurring revenue sales.
Series B: recruiting channel partners and scale partners, raising funding from later stage VCs, and building out unit economic revenue models proving scalability of the business.
Celebrate every win whether it be a customer, an investor, or product achievement. It helps to recruit a big name angel investor which signals to other investors that you have traction with investors.
If you reach a milestone in product development, make note of it to the investors and customers. If you reach a turning point with a customer, make sure investors know about it. It takes seven touches to close a sale so it takes seven touches to close an investor.
Take the investor “on the journey” with you and keep them informed. Consistent communication will show you are purposeful in your efforts to start and grow your business.
Hall T. Martin is the founder of TEN Capital and a builder of entrepreneur ecosystems by startup funding through angel networks, funding portals, syndicates, and more. Connect with him about fundraising, business growth, and emerging technologies