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Securing funding is not any picnic. From preparing your pitch to strategizing what happens after you capitalize in your opportunities, it may well be overwhelming at times. Investors receive countless pitches every minute, making it difficult to get noticed and ultimately secure financing.
I’ve been running a business for over 20 years now, and I’ve learned a lot by pursuing what I assumed would work for me versus what actually works for me and my agency.
Like most young entrepreneurs, my first thought was, “What do I put in my pitch deck?” Until I noticed that constructing an actual relationship with these investors must have been at the highest of my checklist.
I’ve found that ladies entrepreneurs especially have to leverage their unique perspectives and strengths to secure the funding needed to grow and innovate. This means we’d like to spotlight our unique insights and show how our different approaches can result in significant market advances.
After all the hassle and hardship I even have put into ensuring the success and recognition of my business, I even have outlined six strategies for you which have proven effective in securing funding.
Related: The 10 Most Reliable Ways to Fund a Startup
1. Simplify your pitch deck
Your pitch deck makes the primary impression. It must be compelling, concise, and straightforward to know for a various audience, even a fifth-grader. Avoid technical jargon and overly complex terminology.
Investors do not have time to look within the dictionary to know your message. They’re on the lookout for clear, realistic results. Present your solution in clear language and highlight its value and potential impact.
2. Align with investors’ portfolios
Make sure you might have researched enterprise capitalists’ (VC investors’) existing portfolio firms before approaching them, and make it clear how your organization can complement their investments.
Let’s say one in every of their firms has invested in an organization that gives POS systems for restaurants, and your organization provides the software for those kiosks. Focus on this synergy and highlight your value proposition. The investor will quickly see why investing in your organization can be a great alternative and why you’re a potentially good partner.
3. Understand the differing types of investors
Take the time to learn and understand the differences between angel investors, VC investors, family offices and personal equity investors. Each type has unique goals and risk tolerances.
For example, an angel investor could also be more willing to take risks on early-stage startups. Private equity firms, then again, are more focused on finding established firms. Be honest with yourself when assessing why it will make sense for them to do business with you.
Related: Learn how one can select the fitting investors
4. Treat fundraising like sales
Be as rigorous with fundraising as you’re with sales. Set every day quotas for reaching out to potential investors via email, LinkedIn, and cold calling. Mass and consistent outreach increases your possibilities of finding the fitting investor. Personal anecdotes will be powerful; for instance, one client who eventually became a unicorn managed to lift his first million dollars primarily through LinkedIn alone.
5. Emphasize resilience and learning ability
Investors wish to know the way you handle adversity. Every company, especially startups, has its sights firmly set on the tip goal – success – and typically overlooks the obstacles along the way in which. But investors aren’t just curious about those hurdles; they wish to know the way you overcome challenges and what lessons you learn from them.
Be transparent about how you’ve got handled extreme stress up to now and what support you may need in similar times. If you do not address this, it would leave the investor with a giant query mark they usually may simply pass you over because you did not have the business acumen to appreciate how essential this conversation is.
6. Look for skilled and networked investors
Join investors who bring greater than just money. Reach out to investors with extensive experience and networks in your exact area of business. When I used to be raising capital for agency acquisitions, I specifically searched for individuals who had a variety of experience acquiring agencies 1,000 times my size and who worked with my specific audience. It may look like all you wish at first is money, but their expertise might be invaluable they usually might be true partners in your growth.
Related topics: More than money: How the fitting investor can add lasting value to your startup
Raising funding is usually a long and sometimes frustrating process, but if you understand how one can get shortlisted with the fitting preparation, clear communication and solid networking, it is certainly fulfilling.
Don’t just randomly present long and complex pitches. Instead, take the time to get to know your audience and investors and tailor your pitch to their interests and desires. Remember to set priorities that align together with your goals.
Ultimately, start constructing strong relationships, whether on social media platforms or in person, and you will notice a huge effect on your corporation. These learnings have helped me quite a bit to grow, not only by way of funding, but in addition in my business skills and market position, and I can not wait to see your breakthrough!
