After the great development seen by our company from the first half of the year, the entrepreneur, Bhavna Suresh, jumped into the new 10Club movement. The businessman closed South Asia’s biggest fundraiser recently for an incredible $40 million, setting a new record in unicorn history for the country.
As an early-stage entrepreneur who wants to go to the next level, if you have anything to learn from these marquee big-ticket deals, it is that investors are showing big bets and courage in emerging start-ups.
There is a downside. At this early stage of fundraising, most start-ups are busy getting attractive business numbers, which they often overlook or investors do not know what they are really looking for, thus missing out on valuable opportunities.
Depending on your current status, these best practices are divided into three stages:
Before the Pitch
1) Know whether you’re ready to raise or not
First, the founders need to determine if the fundraising start-up is on the right track. It depends on the current state and nature of your business and the business goals for the next 12-18 months and the funds required to achieve them.
2) Determine your outreach strategy
To make a list of investors who are interested in your start-up phase. Since 10% of them are interested, it is essential to have enough options. Cold emails have a queue of their own, so you need to look for connections that could lead to warm introductions with investors.
Plan to spend enough time and energy on the fundraising process – at least two to three weeks.
3) Have the materials ready
Create an effective pitch deck within 10-11 slides, defining concise problem statement, team hard work, product features and vision, breakdown of capital requirements, and strategy for your market. Bonus Tip – Make a list of FAQs for follow-up questions.
During the Meeting
4) Focus on your soft skills
Early-stage start-ups are still lifting off the ground. Although the product or market strategy can be clearly defined, it can change line by line. At this point, investors place more emphasis on the capabilities of the founding team. Keep numbers and business plan in hand, but reserve the meeting to communicate soft skills.
After the Meeting
5) Be ready to close the round soon
After the meeting, the investor will work on the appropriate vigilance process. Here, start-ups can further assist in the decision-making process.
Moreover, founders should consider the interest of investors in deciding when to stop exploring other investment options to prevent over-watering. At the same time, giving investors time instead of excessive driving is good training.
In a nutshell
Fundraising is a time-consuming process due to inconsistencies in expectations between founders and investors. Founders need to be consistent and confident about their business plans. Therefore, when preparing your funding pitch, it is a good idea to thoroughly review your current credentials and follow these tips to ensure that your seed funding is uninterrupted.