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    Fundraising is a crucial stage for startup founders. Without the right advice, founders might find themselves struggling against the tide. As a business advisor and strategist, who has watched and advised successful founders, I can confidently tell you that fundraising is not a walk to the park. It is a serious business. There are various stages of funding.
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They include seed-stage, Series A, B, C, D, and E. Each stage has its various funding rates/amounts and funding expectations. For example, seed-stage funding is the funding a founder receives to kick-start production. While Series A is to accelerate the business process, while B is for expansion and so on. In another article, I discuss the stages of funding. But in this article, I am going to offer you four crucial pieces of advice that will guarantee you success in raising capital for your startup. 

  • Target Investors Aligned with Your Stage and Market

The first step toward successful fundraising is to identify those who are interested in your industry. Successful funding is often industry-specific and as well stage-specific. For example, Accelerators are usually for founders who want to accelerate and grow their business after the seed stage. And on other hand, Series C is when the startup founder intends to use funds for the sake of expanding its operation to other states within the country. 
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Be strategic. Don’t waste time emailing a giant venture capital firm that writes $50 million checks if you’re a seed-stage company. There are a lot of investors out there. Make sure to find one that fits your company’s profile.

  • Startup Success Lessons Learned

Learn from other successful founders. There are countless videos on YouTube on how founders have successfully raised funds. You can also reach out to peers. There are several ways to do this. For example, there are a lot of founders on LinkedIn. You can cold email them, connect with them on a deeper level, and ensure you are offering value.

  • Don’t Send Your Pitch Deck First

Your pitch deck is a very important document for startup fundraising, but do not send it to a potential investor if you are sending a cold email or LinkedIn message for the first time. The truth is this, your company is worth much more, and you don’t have to sound desperate.
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Your pitch deck is worth presenting yourself so that you can deliver the human touch and company story that complements the slide on the screen. Rather, during your first reach out, simply send a one-pager that succinctly explains your company story and showed the proof of concept.

  • Find A Partner That Genuinely Cares About You

One of the biggest mistakes during the fundraising process is to think of your investment as a boss. Fundraising is not time to slave around, looking desperate. Reach out to those who are interested and sell your story to them and give them reasons to partner with you. The biggest truth in fundraising is that the founder and the investor are themselves a favor. You need the investor’s money to strengthen your business; the investor needs a viable business that brings interesting Returns on Investment (ROI). Hence, you are both working together to achieve the same goal, which is business growth.

  • Start the Startup Fundraising Process

If you don’t take action, you won’t see results. To see results, which is having investors’ backing; you draw up a list of potential investors suitable for your startup’s niche and funding stage, prepare your one-pager and start sending off some emails and messages. Featured Image Source: Connect Nigeria
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This article was first published on 29th June 2022

nnaemeka-emmanuel

Nnaemeka is an academic scholar with a degree in History and International Studies from the University of Nigeria, Nsukka. He is also a creative writer, content creator, storyteller, and social analyst.

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