Even while the current investment environment may be to your advantage, that doesn’t mean the procedure will be quick and simple. It can take up to six months to get equity funding and even longer to learn that it has been rejected. In light of this, we have compiled our expert tips for locating and obtaining venture capital.
1. Know and Keep Your Metrics Handy
Your pitch’s specific details will need to be supported by credible proof. If you tell them you anticipate growth of 50% in the next 12 months, you must be prepared to explain how you arrived at that conclusion. Make sure that any statements you make can be supported by actual metrics.
Additionally, VCs will require various information based on your business. Look for a similar business or a rival, and try to identify the key criteria by which they are evaluated. Looking at successful online fashion stores if you work in the fintech industry won’t be detailed enough, and you’ll almost likely miss important components you need to deliver on (which could make or break the deal for you).
2. Showcase Customer Success
We can relate to the frustration of starting; you need venture cash to attract clients, but you also need customers to make money. Our opinion is that approaching an investor with existing users or clients will significantly increase the value of your startup.
When considering an investment, investors go through a detailed due diligence process that involves asking customers about the quality of their products and services. A meeting with the founders or reading corporate literature just cannot provide the same insight into the planned start-up as an interaction with a consumer. Create a strategy for acquiring your first client that doesn’t require a significant amount of outside funding, and have these clients prepared to do interviews with prospective investors when the time comes.
3. Definite Time
Every startup or business owner who intends to raise capital should be certain of the precise timing of the financing. When it comes to fundraising, neither early nor late is ever too late. You simply need to determine whether you can bootstrap your business to a certain extent or whether you need financial support to expand your firm.
4. Thorough With the Offering
Every entrepreneur should be aware of the offering or product for which they are seeking money before approaching an investor. To make it simpler for them to respond to investor questions, they should also be aware of their rivals that operate in the same industry. Additionally, if they are aware of your main constraint, the competition, and your product, it will serve as the cherry on top for entrepreneurs looking for funding. Kansaltancy Ventures is a global investment management firm that specializes in preparing businesses for funding and raising funds through its ecosystem, which includes a network of over 650 global investors, perfect for venture capital and equity funding.