Article adapted from Seraf: Portfolio Management for Early-Stage Investors
Crunchbase reported that in May 2022, Last month, venture investors globally spent $22.3 billion in the late- and growth-stage sectors, with early-stage funding reaching $13.7 billion last month. Going after investor funding is one way to inject capital in your business for growth and operational needs. How can your company prepare for pitching to investors?
Here’s five tips to consider while raising your next round of funding:
- Raise Amount. Understand how much money you want to raise, what you will use it for and some idea of how and when the amount invested will cycle back into the company.
- Investor Database. Angel or VC? What industries does a fund already support? Who in your network is connected to investors? Is this fund founder focused, or customer strength focused? As you create a database of potential funders, do the research on the type of investments the investor has made, what other expertise or resource can your company gain from the relationship, and who in your circle can make a warm introduction. Understand that each investor is going to come with their own expertise, communication style, and expectations for the direction of your company. Be sure to include these in your database as well to see if the investor is in alignment with your team’s core values.
- Know Your Story & Value. Throughout your pitch and pitch deck, it should be evident how much you understand the strengths of your company, how you’re combating your weaknesses, the industry/industry advantage, and what makes your team the best to bring that product/service to market.
- Transparency in Your Journey. Hopefully, even before reaching out for investing you are sharing in social media, events, newsletters, etc. your journey tackling this opportunity your team is pursuing. Investors or those investor adjacent can come along your journey of success and build interest in your business, all from you keeping those informed of the events, research, or achievements of the company.
- Turn your no’s into recommendations. Should an investor tell you they’re not able to invest, ideally it is best to set the pride/feeling of defeat to the side and find a way to get something out of the opportunity. Ask for a referral, to keep them on your newsletter lists, or to invite them to your next event.
These recommendations come from being on teams that were going after their seed and Series A funding. With these strategies, they were able to expand their investor database and their initial funding asks. Be sure to share this article and your investor experiences in the comment section.
Desha Elliott is a Market Manager for Accion Opportunity Fund and owner of a program evaluation firm Pantherum Solutions Group Consulting. Her previous experiences include running a digital marketing company. being a nontechnical founder of edutech app (PB7APP) and a Strategic Partnership Director for music tech company Rap Plug, Inc.