1 min read What does it take to Raise Funding?
First-time fundraisers make many mistakes. Here’s a list of key points to consider before your next meeting with an investor for your startup.
It’s show, not tell.
There’s an old saying: If you tell me, it’s an essay. If you show me, it’s a story.
To raise funding you have to show, not just tell. Forecasting alone doesn’t close the round. You must demonstrate progress towards it.
Never show up to an investor meeting or call without something new in hand to show your growth story. Always talk about a customer and their engagement with your product or team.
Show how the team is making things happen. Show how other investors are interested in committing funds. Show how the product is working and what it is doing for the customer today.
You must own it.
In raising funding just as in running your business, investors look to see if you own it.
Do you own the challenging problems, or do you avoid them? Do you own the core business, or do you delegate it to someone else? Do you abide by the contracts you sign, or do you try and duck out when it goes against you?
Investors are looking at how you run your business to see if you own it. So, in the fundraise, do you own the numbers? Do you own the investor relationship? Do you own the results you show them after the fundraise?
Read more in the TEN Capital eGuide: https://tencapital.group/due-diligence-and-leading-the-deal/
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: firstname.lastname@example.org