We have interviewed our Co-Founder Susan Richards, FCPA, FCMA on tips that she would give to startup founders that are looking to raise money.
What are 3 tips you would give to a startup preparing for funding?
When it comes to fundraising it really comes down to an exercise in confidence. I have repeatedly seen foolishly confident people score funding for really bad business ideas.
The fact that you launched a business proves you already have more confidence than the average person. However pitching in front of a panel of investors or bankers has a way of exposing all of our vulnerabilities like nothing else.
These 3 tips are essentially ways to protect your confidence and stop the intimidating process of fundraising from eroding your best self.
Tip #1 - Create (or hire someone to create) a 3 year monthly financial plan so that you know with confidence exactly how much cash you need to raise.
Tip #2 - Remember you are pitching your business not your product. Consider more generally your product offering and focus more specifically on what problems your business is going to solve. It is unlikely the investor is going to technically understand the nuances of your product but much easier for them to wrap their head around the overall concept of why the world needs your business to succeed.
Tip #3 - Be less considerate of what you think others want to hear and more focused on what you want to say. The more you try to pitch what you think your audience wants to hear the greater the chance that you are depleting your confidence along the way. Focus on what you want and why, and be unapologetic about it. You got this.