How can you fundraise for your startup?

When you start fundraising, think of "who" in addition to "what" (how much money; what it's going to be used for; timeline, etc.). Who do you want to invest in your company? Do your own limited due diligence on that investor even before approaching them. Contact two or three of their portfolio company founders and ask them if they could do it over again, would they still partner with that investor. And if you get a green light, ask for an introduction to that investor.

Simple hack to build your investor network faster by Meet.Capital: When you find a profile of a potential investor on LinkedIn, do the following: 1. Read the profile carefully. 2. Make sure the person identifies as an investor and doesn't specifically ask not to be approached. 3. Check if they have a Premium LinkedIn user badge. 4. Look at their experience. Make sure that as far as you can tell, they do invest in startups and have the financial capacity to do so. 5. Make sure they are active LinkedIn users, meaning that they recently liked, commented or posted on LinkedIn. 6. If the investor passes all the screening steps above, send a blank connection request right there. 7. If they accept, send them a focused, brief message.

Your network is your net-worth. Mindfully connecting with the RIGHT investors & startup founders who have been funded by those values-aligned investors is key. Startup founders should build an Investor Persona (similar to a customer persona) to understand the demographics, psychographic, attitudes, behaviors & investment thesis of the ideal investor who aligns with your goals, vision and values. In parallel, map out the industry, stage, check size, & portfolio makeup of that unique investor. Then, seek her out by searching LinkedIn, AngelList, Crunchbase & PitchBook for investors who align with your ideal criteria. How? Evaluate the articles they share, panels they talk on, blogs they write, events they attend, and portfolios they build.

Join top accelerators, tap into alumni networks, engage on online platforms, attend industry events, share insights, seek warm intros, perfect your pitch, and stay persistent in building your investor network. These things take time and fundraising becomes a full- time job for a CEO in the 'fundraising period'.

Storytelling is a game-changer in proposals and grants. Imagine trying to explain a complex scientific concept, like how climate change affects ocean currents, using technical terms and data alone. It might feel overwhelming and hard to grasp. Now, picture telling a story about a family of marine researchers sailing across the seas, witnessing the changing currents firsthand. Through their experiences, you can effortlessly convey the cause-and-effect relationship, making the concept not only easier to understand but also relatable and memorable. Storytelling simplifies intricate ideas by placing them in familiar contexts, connecting with the audience's emotions and making learning more engaging.

Remember that the best showcase of your startup is YOU. So ensure you understand how the Financial Model works - don't just pay someone to make it for you. Also, if the amount of materials feels overwhelming then speak to a founder (ideally in your sector) and they will more often than not be happy to share theirs so you can use it as a starting point rather than starting from scratch.

In your pitch, be formulaic but unique (align yourself to other pitches at the same stage, industry, yet be unique in the product-market-fit), be consistent in conveying value prop & be authentic but "plain" (be organized in order & function of pitch so you shine in your authenticity). Here is a 5 min pitch slide outline: 1 - Logo (not elevator pitch) 2 - Problem (use stats to prove) 3 - Solution (describe product & UVP, Unique value proposition) 4 - Market size (know both top-down * bottoms-sup approaches) 5 - Business model (B2B or B2C) 6 - Competitive Advantage (product differentiation) 7 - Competition (table or X-Y axis) 8 - Team (core & advisory) 9 - Ask (fundraising amount) 10 - Thank you & contact info (end memorably)

Another aspect of fundraising is to be clear in the approach. A majority of the times, the approach and vision gets distorted whilst the fundraising process takes place. Keeping everything intact is the key and that is where the key skills of founders are tested. These factors affect the success of the fundraising process.

Don't forget that there are alternatives to going the traditional institutional capital route (VC and the like). Founders that have created a strong brand following or already have customers can turn their fans into investors and add an "Invest Now" button to their website with Reg CF or Reg A raise type exemptions. Often raising with your customers offers more founder-friendly terms than going VC.

In my experience you must ‘win it on paper’. That means you must have a clear target and why that is needed and who it benefits and you must find those who will support you by either giving their own pledges or helping you access those who could. One of the biggest realities is that people give to people, and I believe that is because of the trust value of being introduced by someone they know to the need, and the second thing but equally important, they want to see where the money is coming from or could come from - the potential - because they want to know that it will succeed. Actually there’s way more than these but for now those stand out. Happy to have a discussion about winning it on paper!

Knowing what are the fundraising approaches used in your market or the market in which your target investors are based, and which works for you is rather important to design a fundraising plan for your company. Investors would evaluate what's available in the market. So you need to know the games and who are the "competitors" out there to win it.