Gaining Sales Traction for Fundraising
In raising funding, revenue traction is a key driver in attracting investors. Here are some key steps to gain sales traction for your fundraise. Early-stage companies don’t have a large number of users, as that will take time. Instead, start with a small but dedicated set of users. Engagement with...
How To Maintain Presence With a Prospective Investor
In raising funding, it takes several touches to close an investor. It’s best to create additional interactions with the investor beyond asking, ‘are you ready to invest yet?’ Here are some key steps to maintain presence with a prospective investor: Offer to provide a special discount on your product or...
When the Investor Says No
In raising funding, the founder hears the response ‘no’ many times. Here’s what to do when the investor says ‘no’. Show gratitude. Thank them for their time and attention. Ask for feedback. Find out more about what they like about your deal and what they don’t. Connect on social media....
Fundraising Is Project Management
Fundraising is project management. In launching a fundraise, treat it like a series of projects. Here are the key steps: Start with investor documentation and build out the materials needed. Build a list of potential investors. Gain introductions to those investors. Set up meetings with each one. Follow up on...
Starting a Relationship With an Investor
In raising funding from an early-stage investor, the founder must build a relationship with that investor. Here are some key steps to starting a relationship with an investor. Learn their background and experiences from online sources. It’s important to know their education and work experience. Research the investor by talking...
Overcoming Sales Call Anxiety
Startups raising funding need to show a growth story. Investors look for traction and momentum in businesses to fund. The ability to sell the product is a key skill for early-stage founders. Some founders are not good at selling and have sales call anxiety. Here are some key steps to...
Building a Moat Into a Startup
Startups in the early days have little to protect the business beyond intellectual property. As the company grows, the startup can build a stronger moat. Here are some key steps for building a moat into a startup: Network effects — grow the network within your customer base to strengthen the...
How To Build a Capital-Efficient Startup
Investors look for capital-efficient businesses to invest in. Founders looking to raise funding should first consider building a capital-efficient startup. Here are some key steps to building a startup that is capital-efficient: Look for a business opportunity that generates good revenue from the customer. The customer will pay a high...
Key Sales Metrics To Look For
In reviewing startups, here are the key metrics investors should look for: Annual contract value — the value the customer spends on the product in one year. This needs to be a meaningful amount of money in order to grow a startup. Customer lifetime value — the total amount of...
How To Get the Most out of a Pitch Session
For those setting up a pitch session, here are the key steps so the presenter and investor get the most out of it. Decide the goal of the pitch session. This could be providing practice for the presenter, or giving feedback on the pitch, or making an investment decision. Determine...
