Fundraising

How to start

Ever since I have started to work with start up's and NGO's, the same question comes up in regular pace, how can we collect money from donators, investors or other sources.

Well the solution is not as simple, even if the answer might be, offer value to those whom you are addressing. But while we are in the journey, while we are addressing our market, we are striving to offer value, we have to cope with different stakeholders and different expectations.

That is why, the solution might not be as straight forward.

While I have been working in this topic since 17 years now, my advice to those whom are starting would be.

1. Understand your own objectives
2. Decide where you create value in the world, for whom and whatfor
3. Imagine who other then the direct beneficiary are interested in your success
4. Address your public with a sustainable and explainable value proposition

Now this will give you a good base for starting off.

Differences between startup and NGO

The main difference between a startup and an NGO is that the start up might be able to have a real promise of giving back some kind of liquidity, the NGO might focus to give back an immediate value for participants and some kind of promise to a better future.

In a case like the Parkinson Foundation, the Multiple Sclerosis regional, national, european or world Organisations, the promise might immediately been done to patients, but indirect benefits might be addressed to participants of an "awareness run" or a golf tournament. Bringing into play the intentions of sponsors, whom have totally different objectives, like selling gears or else.

This mix of interests must be understood, analysed and finally put as driver to your initial objective.

Groups of supporters

Here we are in the usual question, but who is giving.

Well we are still with the usual crowd:

1. F&F
2. Private Equity
3. VC
4. Corporations/Banks

For some this might be counterintuitive, others will not understand the terms, well I will shortly name Friends and Families whom are the biggest part of all sponsors when it comes to small and tender initiatives. Be it by you selling them waffles or inviting them to a golf tournament.

Engaging and keeping up for the long term

Hooking your target will not always be easy.

As a startup or NGO, in despair and conviction, you might wonder why some spend another Euro on an additional drink in the evening, rather then sponsor a good cause with two Euro, why they are spending money on purchases, rather then to invest in a cool start up. You might ask VC and corporations, why they still finance the usual. Why banks finance known businesses.

There is no right or wrong answer to it, but everybody is autonomous about his investments and decisions.

It might be in the paradoxe that 90% of people want to change the world, but only 10% work actively to do so.

It might be that there is to much demand and people/organisations get lost in the overwhelming offer.

I personally believe that if you get your value proposition right, you will drive and get your financing right.

In terme of keeping your crowd and target group with you, there might be some aspects, where I have learned my lesson: Well the first aspect is to deliver to your promise to all stakeholders involved, the second is remain rather in "underpromise and overdeliver" and the third is be honest about outcomes and delivery.

Final comment

This is a very general and abstract position, I would love all of you to contribute with your learnings and I invite those, whom are on the journey to ask me for advice, it is my business and my personal path to growth, while trying to build a better world with all of us being imperfect.