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.
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.
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.