Attracting Investors and Raising funds from investors can be the most challenging thing in the market of business, thus, through this article, we are going to tackle and discuss 7 Pieces of Advice to Attract Investors and Raise Funding.
7 Pieces of Advice to Attract Investors and Raise Funding
1- Don’t be desperate
Desperation stinks and investors can smell it miles away. This will scare a lot of good investors away while few will come and hand you easy money which tends to choke you and your business in the future. You need to be sure that the investors you are bringing into your business align with your philosophy and also accept you on your own terms
2-Be disciplined and stick to plans
Richard Wnuk, a senior advisor at Blue Heron Ventures said his fund used to adhere to a “spray and pray” strategy of investing in many promising startups. But now they insist on seeing serious discipline in the entrepreneurs before paying attention to them no matter how brilliant their ideas might be. This shows that your discipline as an entrepreneur is part of what the investors are investing in.
3- Prove how you’re solving a problem
You need to add value and make sure your product is something that the market actually needs. “If you’re solving a problem for anyone at all, for a big market at all. then an investor is just around the corner,” said Dominick Danao, Magpie.IM, which allows companies in Southeast Asia to accept mobile payments.
4- Mix in philanthropy
Many investors are entrepreneurs themselves, and the reality is that entrepreneurs are more prone to charity than any other demographic. Plus, people are simply more interested in companies that serve a common good (even if they also sell, say, hairbrushes). “First of all it feels good to be charitable, but secondly, let’s be honest. Being charitable makes you look good,” says Cohen.
5-Have a really good story to tell.
“A good story is more essential than numbers or anything else,” said Mada Seghete, co-founder of Branch, a mobile solutions platform in Silicon Valley, said. “Being able to inspire them and having a huge vision for the future and a story of how your company will grow and take on a specific market.” “Get them to actually believe in your vision,” Seghete said.
6-Combine simplicity with disruption
The best ideas are often the simplest, so make sure both your products and services as well as your pitch are short and sweet. Your product should, of course, be innovative as well. Developing such an offering is only half the battle. You also need to show it off correctly. Don’t get too technical, don’t depend on jargon, and state your pitch without being condescending.
7-Avoid following the crowd
To attract the attention of an investor and raise funding, make sure your product solves a real problem. Too many entrepreneurs simply try to reinvent the wheel, so avoid being one of them. “As Jeff Hammerbacher, Founder and Chief Scientist of Cloudera, put it, ‘The best minds of my generation are thinking about how to make people click ads. That sucks.”