Do not miss these key Elements of Fundraising ??
I know it’s been a long since our last newsletters, but sooner than later we are back again with all these stories and lessons. ??
So, today I am going to tell you about one of my recent journeys. ??
During my journey, I overheard a fellow passenger discussing a startup idea with his friends, it sounded so intriguing that, my curious self went ahead and asked him everything about their idea, and gladly he was happy to share from scratch!
Well, they had the idea - which is scalable, ??
Their execution process - sorted out, ?
Their marketing strategy – was on point ??, and mainly they were ready to hustle 24/7 to see their idea turn into reality.
All that was left was, the most important thing – FUNDS!!?? Well, you need money to get started.
So, here I come giving the Fundraising 101! ??
Many early-stage founders begin looking toward angel investors to finance their initial growth, hiring technical resources, creating MVPs, and acquiring customers which without capital can seem daunting, if not impossible.
But sadly, that’s exactly what needs to be done, because:
Investors do not fund startups without proven products, customers, and technical capabilities.
To validate his or her early ideas with little financial flow, the creator must demonstrate exceptional innovation. That typically means:
1. Saving money and investing in your idea,
2. Asking friends and family for financial support, and/or
3. Identification of expenses and doing this in a controlled manner
That said, one of the biggest mistakes we see earlier-stage founders make is approaching investors before they are truly ready.
Considering the large amount of work involved, we recommend having a basic framework in place before meeting investors for fundraising because, fundraising at the right time will boost your confidence and success—while the wrong timing can hurt it.
It’s easy to arrange meetings with angel investors as most of these individuals genuinely enjoy mentoring young entrepreneurs toward success. And they want your idea to be the next big thing because they want to make money! However, once an angel passes on a startup, it’s unlikely they will accept a future meeting invitation.
Umm.. letting you in on an Insider Tip!
These local investors are a tight-knit group, especially angel investors and micro-VC firms who routinely conduct joint deals. A few bad pitch meetings could land you in the “don’t go there” category within your community.
For these reasons, we have created the Startup Funding Checklist.
While there are no guarantees when it comes to procuring capital, adhering to these benchmarks will substantially increase your chances of success.
The Startup Funding Checklist includes 6 points, all you have to do is tick them off!
1. Are you working full time on your Startup?
2. Is your Startup – Scalable?
3. Are you an incorporated entity?
4. Do you have a Cap Table?
5. Do you have a Strong Pitch Deck?
6. Can you Demonstrate “Traction”?
Don’t worry, I know you want to know about these checkpoints in detail. But, for that, you’ll have to wait for the next week!
Hope you liked it, See you soon!
Team,
Jordensky