In the last chapter, we discussed the different sources of start-up funding. However, it is one thing to know about funding sources, an entirely different thing to know how to actually get the money. In this chapter, we review how to behave in your quest for funding. What support material should you prepare? How do you find investors and get meetings set up? How do you behave during those meetings? And what happens afterwards, if investors are interested?
Unless you do crowdfunding or an Initial Coin Offering, it normally takes a lot of investor meetings to raise money for a round. Indeed, a study by DocSend showed that for a single round of fundraising (seed or series A), a start-up company on average contacted 58 different investors and had 41 investor meetings. This generated on average $1.3 million and typically took approximately three months.1
For a single round of fundraising (seed or series A), a company on average contacted 58 different investors and had 41 investor meetings.
So it's not particularly easy. Let us jump into the investment process head-on, namely with the following 10-step fundraising guide. First, it's important to know that you actually start preparations long before the real hunt for the money.
- Visibility. Before you plan to seek capital, you must make yourself visible to potential investors. Arrange meetings with them, if possible, and sign up for any sessions where many companies can pitch. Thus, you can learn from seeing ...