10 Tips To Improve Your Chances Of Fundraising

InvestorConnected

1. Have the righ perspective

The old adage of “know your audience” couldn’t be more appropriate in this instance. Understand what funders are looking for when assessing your business and highlight those things. Never forget, they are there to make a return on investment from your business

2. Get your fundamentals right

There is no use having a beautiful pitch deck if it doesn’t convey clearly the core components of your business plan/strategy/financials.

3. Number, numbers, numbers

Funders love numbers. Whether it is how many clients you are planning on acquiring or the unit economics of your business, funders want to see your business in numerical terms.

4. Choose the right investor(s)

As with everything in life, making sure that you are focusing on the right things will significantly increase your chances of success. Do your homework, and make sure that you are approaching the right individuals or organisations for your business. Check what they invest in now, and have invested in before. Be honest with whether your business fits the bill.

5. Stop verbose comparisons

“We are the next big… Spotify/Uber/Facebook”! But are you really? Those are big claims to make and we have seen many funders cringe when they hear those lines. Don’t be cliché.

6. Value conservatively

The price that an investor pays today will have a significant impact on the return they make tomorrow. Saying that your pre-revenue startup with no significant intellectual property is worth more than £20 million is probably going to alienate many potential funders (and make them question your business acumen).

7. Present effectively

Notwithstanding what was said in point 1, not presenting your business clearly and attractively can also be a big turn-off. Remember, you have a lot of competition, having a good brand and professionally presented information can help you stand out from the crowd.

8. Listen, conteplate, adapt

It’s very rare for any business to go out with their first pitch deck or business plan and raise funding. Those who are most successful will listen to feedback (reading between the lines as well) and evolve their business plans and pitches over time. Be flexible.

9. Be patient

Fundraising is not easy! (Check our Funding Landscape report on www.investorconnected.com/resources). It takes on average between 3 – 6 months (but often longer) to raise funds and it is a painful and labour intensive process. Don’t expect every funder to be beating your door down to invest in your business… It’s not something that happens often so manage your expectations.

10. Fundraising is a skill

Just like swimming, riding a bike or presenting, fundraising is a skill. There is a lot to learn and you need to be prepared to take the time to learn how to do it well. Whether it is through videos, blogs or working with programmes, consultants or mentors, improve your capability in this area. If your business is successful, it is likely that you are going to be fundraising several more times in the future.

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