Step By Step Guidelines On Fundraising

May 15, 2018 in Cultivate, Startups

Planning is the key to success in every mission. This is very much true when it comes to fundraising. When you adopt a planned approach, you will find yourself more organized and achieve more than what is otherwise possible. It is important that you avoid the common mistakes done by many people seeking to raise venture capital. Here is a step by step guidelines on how to move forward with your fund raising campaign.

Step By Step Guidelines On Fundraising

Prepare a list

Creating a list of prospects is the first step to any fundraising campaign. Most VCs either do not do this or do it wrongly. It is most unlikely that you will approach only a limited number of people and be going about the task without a list in hand would be a mere waste of time.

Reorganize the list on a priority basis

When you rework on the list you have prepared, you will feel like moving the entries up or down depending on the priority you attach to the potential investor. Though the list can grow up indefinitely, it is good to have it as small as 15 organized based on priority and proceed with the list.

Sort out the investors

The next step is to sort out the potential firms into different segments to know who will be a good fit for you. Target the investors who might be willing to invest the amount you have in mind, not more or less. Do not target funds that are of higher value. Also focus on the industry of the investor, the geography and competitiveness before studying their past history of investments. This idea must give you a set of criteria to work with while sorting out the firms.

The underline

Always do remember that fund raising is like selling something. The investor is a kind of customer with funds at their disposal. Though they have money to spend, they can invest only in a handful of companies. It is hence essential for you to develop the approaches and strategies that will help win their trust. When the investors feel you are a smart and credible individual who can lead effectively and inspire others, they are most likely to take interest in investing in your venture.

Mistakes not to Make While Making a Pitch for Fundraising

January 19, 2018 in Cultivate, Startups

Being an entrepreneur is never an easy task, but many have already failed at doing something. Failure, most of the times, leads to lessons and learnings, which could prove valuable to the people who would try doing something similar or do the same thing. That’s why the advice on mistakes that could kill your fundraising pitch is so crucial—people have already failed to raise funds by making these mistakes. You should not!

Below is some advice that you can take in your stride to avoid failure while pitching for fundraising:

  1. While pitching before the investors, get to the point early. The point of your idea or the startup. What problem you are going to address or solve. Don’t give a general description of the market or industry. In short, get them excited about the idea.
  2. Try focusing on a single or a couple of problems. Don’t take a bucket-load of problems to solve—try being more focused.
  3. Don’t speed up your presentation too much. Try making your speech audible and understandable.
  4. Highlight the competitive advantage of your product. Show the metrics for user engagement and other relevant data to prove that customers will love your product over your competition.
  5. Show them how you are going to make money. Almost no investor will fund an idea that does not have a business model.
  6. Avoid going into technical jargon too much. To keep things interesting, keep them simple and avoid difficult terminology.
  7. Don’t make your presentation deck too smart or bad—keep it balanced and legible so that whatever you are showing is at least readable.

It is obvious to be little bit nervous and conscious if you are in the initial phases of funding and haven’t done the pitching quite often, yet practice will make you more comfortable and relaxed. This ensures that your delivery is smooth and is not hurried.