Why Do Some Startups Raise Funding Quickly?

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

Some startups seem to raise funding quickly and with great ease.

The press coverage of startups often leads the reader to believe that the round closed in a short amount of time.

In most cases, the startup spent substantial time planning and then campaigning to raise the funding.

It appeared easy because the hard work was done before the campaign launched.

The founder starts six months before the campaign launches.

They researched and built a strategy for the campaign.

They then prepared the documents and digital assets for it.

Most founders contact ten to twenty investors to check interest in a potential investment.

This often tells them the concerns the investor may have about the deal.

The founder then mitigates that risk.

All of this goes on before the fundraiser begins.

It takes seven touches to close a sale, so it takes seven touches to close an investor.

Start that engagement before the campaign starts.

Once you have enough interest and potential commitments, then launch the fundraise campaign.

For some, the fundraiser looks easy.

It's not; they just did the work before the campaign began.

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let's go startup something today.

_________________________________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org

Check out our other podcasts here: https://investorconnect.org/
For Investors check out: https://tencapital.group/investor-landing/
For Startups check out: https://tencapital.group/company-landing/
For eGuides check out: https://tencapital.group/education/
For upcoming Events, check out https://tencapital.group/events/

For Feedback please contact info@tencapital.group

Please follow, share, and leave a review.

Music courtesy of Bensound.

Raising Funding To Be a Unicorn

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

Raising funding for a unicorn seems like a mystical art.

The funding rounds are outsized compared to the norm.

Here are the key components to raising funding to be a unicorn:

The team has exits.

If your team doesn't have a history of successful startups, then build out your team with more experience and star power.

The team has a known business model that can be applied to a new growth area.

This is often a recurring revenue stream built around a new industry segment that is now inflecting upward.

The investors are familiar with unicorn deals and have had success with them.

Look for early investors in past unicorns as potential investors for your deal.

Scalability is the primary concern.

Build scalability into your business through recurring revenue, virality, network effects, and more.

Have experience with the domain or sales channel prior.

Many successful startups have built businesses in the domain prior to becoming a unicorn.

This gives the founding team an edge through their network.

Consider these points in raising funding to be a unicorn.

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let's go startup something today.

_________________________________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org

Check out our other podcasts here: https://investorconnect.org/
For Investors check out: https://tencapital.group/investor-landing/
For Startups check out: https://tencapital.group/company-landing/
For eGuides check out: https://tencapital.group/education/
For upcoming Events, check out https://tencapital.group/events/

For Feedback please contact info@tencapital.group

Please follow, share, and leave a review.

Music courtesy of Bensound.

Key Components of a Fundraising Strategy

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

Before launching a fundraiser, the founder should first develop a fundraising strategy.

This is the plan for how to prepare and then launch a fundraiser campaign.

Here are the key components of a fundraising strategy:

Identify the problem to solve and ensure it is a substantial problem that will attract investor attention.

Build a solution to show that it works, and customers will pay for it.

This could be a minimum viable product.

Make a list of family, friends, and other personal connections who can provide funding.

The early stage of funding is the hard part and should be done by those who know you.

For the rest of the raise, you'll need to show traction, a growth story, and a key insight that drives your business.

Traction is revenue that is growing.

A growth story shows how your product fits the market and how customers are engaging with it.

The key insight is your knowledge of the problem and how to solve it with a unique solution.

The unique solution is your value proposition.

Investors look for a competitive advantage, and having a key insight helps.

Consider these elements in building your fundraising strategy.

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let's go startup something today.

_________________________________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org

Check out our other podcasts here: https://investorconnect.org/
For Investors check out: https://tencapital.group/investor-landing/
For Startups check out: https://tencapital.group/company-landing/
For eGuides check out: https://tencapital.group/education/
For upcoming Events, check out https://tencapital.group/events/

For Feedback please contact info@tencapital.group

Please follow, share, and leave a review.

Music courtesy of Bensound.