Startups, after identifying ideas and building business plans, all want capital to realize their dreams. There are many ways for startups to manage their initial capital such as borrowing from relatives, seeking funding, getting a bank loan, equitizing a company or joining “incubators”. When a startup decides to join an “incubator” such as a venture builder, incubator, accelerator, in addition to investment capital support, your business will also receive strategic advice from industry experts, meet and exchange with other investors. founder in the startup community. However, it is not easy to want investors to “put down money” for your project. Please refer to the following content to understand how to successfully raise capital for Startup.
Understand the business, sales & marketing activities of the business before calling for investment capital
First, before proceeding to raise capital from investors, you should start by making a detailed business plan. This will help you figure out exactly how much investment you need and why you’re choosing your partner, and how many shares to sell.
Furthermore, when creating a business plan, you will be able to articulate your personal views regarding your business goals, target market, target audience, competitive landscape, product definition and project. financial statements. These are all important aspects that investors look for when researching the market and determining your potential rate of success.
Use the SMART model to define your goals. SMART stands for: Specific, Measurable, Attainable, Realistic and Time-related.
Know the information about the industry the business is operating
Investors won’t waste time on a startup that doesn’t know the industry it’s in. Do market research, add as much industry knowledge as possible. Founders need to know the history and all the latest news about the industry of the business, who is leading and who is failing, and more importantly, why you chose this industry. State your industry perspective to show investors that you know more than your competitors and are ready to create a valuable and sustainable vision for the future of your business.
Identify the type of investor
What type of investor do you want according to your aspirations? What qualities do they need? What will they bring to your startup? What investor qualifications are you looking for: market expertise, customer insight, relationships or financial expertise?
Once you have identified the type of investor you are looking for, you need to select the most suitable investors for the funding stage of your business. Next, you should start contacting investors directly. When you start a talk or send a project for appraisal via email. Remember that you are working with a potential business partner and they could be involved in your startup for years to come. Make sure they’re the type of person you can expect as you build your business together.
Learn about investors
In order for the company to grow and take further leaps, the founder needs to raise capital, find as many investors as possible. Currently, there are two main types of investors: mutual funds and individual investors. When accompanying investment funds, founders need to have a specific business plan, clear legal contracts with tight binding terms, and lengthy procedures. In return, this relationship will help businesses a lot in the future: unlimited capital support, legal advice, successful participation in the business ecosystem, etc. As for individual investors, usually the procedure is more streamlined but the capital provided is quite limited.
Founders need to be alert to find investors in line with the company’s direction and vision. Therefore, when choosing an investor, you need to consider two main factors: the amount of capital they will invest in the company and the investor’s experience in the field the company is pursuing.
Learn from successful fundraising founders
“Study, learn more, learn forever” and learn from founders who have successfully raised capital is a great idea. Develop relationships with people who are already successful in business, develop their careers, listen to their experiences regardless of whether they are in your industry or not. Remember, all the advice of the forerunners will help you a lot in the first round of capital with “older” investors.
Meet investors with co-founders
When meeting with investors, you should go with your co-founder or advisor. Do not go alone if you feel you are not good enough, not confident enough to contact investors directly. Go with someone else and convince the investor together, especially when that person fills in your experience gap.
Another thing to keep in mind is that startups should regularly share their ideas so that they can get timely feedback and advice. This is a very different point of view from the thinking of most startups in Vietnam today, who often “only start looking for investors when they need capital”. Keep approaching and giving ideas, surely investors will see the potential in your company.
Prepare a great presentation
When meeting investors, you need to impress them as soon as possible. Preview the presentation carefully and practice fluently the quick introduction of yourself & your business so that it is concise, concise and informative.
Besides, the presentation you need to prepare carefully and have a clear message. The most sincere advice Skylink Partners can give you is to tell a story throughout your presentation. Stories help listeners put themselves in the shoes of the people you’re targeting. It also helps attract investors as you showcase your vision and ultimately explain why your business deserves funding.
Here are the essential content you should refer to to include in your presentation:
- Vision – mission, slogan, corporate values: Briefly present, clearly state the message, with the right purpose;
- Problem: present the situation and identify the problem you are trying to solve;
- Target markets and opportunities: Go into more detail about who your target audience is and the size of the market. Explain how you position your business in this market and how you will stand out from your competitors;
- Solution: You created a problem that resonated with investors, and now you’re showing how your product or service solves this pain point. Use images, such as pictures or videos, to help bring this idea to life;
- Roadmap to building and validating products to the market: Convince investors that your business model is worth their time and money and does not pose great risks;
- Revenue model: Explain how your product or service will be profitable. Presentation of cost, expected revenue and profit method;
- Sales & Marketing Strategy: Creating a comprehensive go-to-market strategy demonstrates that you’ve put the time and effort into knowing exactly how to attract customers to your value proposition;
- Professional team: Highlight the skills and experience of the core talent in your business;
- Finance: Present business finance in detail, but don’t get too in-depth. Let investors predict your potential based on actual data from the business.
- How to use the capital: Outline exactly how you plan to use the capital when preparing to raise capital. You want to use capital to build a staff or develop products, sales & marketing, expand markets, …
Above are practical sharing from Skylink Partners to help startups raise capital successfully. Raising capital is not an easy process, but to have great success, startups also need to go through this stage. Therefore, prepare thorough knowledge, confident demeanor, and complete information research before participating in the Demo day/Pitching session.
Start-up investment fund Skylink Partners is a member of Skylink Group operating under the venture builder model. Owning a team of experienced core experts in the fields of finance, IT, sales & marketing, Skylink Partners is committed to bringing diverse investment products in the fields of technology, social media, and retail with high quality. , has long-term profitability potential. Therefore, if investors want to accompany or cooperate with us, please contact the hotline 028 6254 9999 or leave a message in the form below. Skylink Partners will support you as soon as possible. Best regards.