The Art of Startup Fundraising by Alejandro Cremades

You must have a good management team from as early as possible, and this will ideally include legal counsel so that you don't make any serious errors. It's not enough to have a great idea, you must combine this with great execution. They're looking for very particular things and most startups are passed over. Most of the time, investors don't want to invest. Ask for advice, get money twice.' Setting Up For Success Instead, build connections by following up, nurturing and connecting others together where there is no obvious direct benefit to you. If all you want from others is 'just cash' then you won't get very far and people will see your single dimension a mile off. That is, conversations with investors (or even simply the people that may yet connect you to investors) is about building human capital.

It's important to always be connecting the dots. If you're on your own it suggests that you weren't able to find a co-founder to come along for the ride and, if you have too many, it becomes complex, dilute and opens the door to potential disagreement. It's better to have 2-3 founders than be a lone wolf or a cast of thousands. It doesn't matter how great your invention or innovation is if people can't relate, and if of you can't speak their language.' 'Many entrepreneurs unfortunately overlook the value and importance of storytelling, and focus on technical info, which investors and consumers simply can't relate to. More importantly, it's something you can sell. Storytelling is incredibly important and helps evoke the human side of what you are doing.

This means building channels that give you traffic without having to invest capital in order to acquire users.' 'Note that investors will be more interested in organic growth. Make sure there is some way in which you are able to beat the competition, otherwise why would they give their investment to you and not them? It's important to remember that they are not buying your product or service-they are buying a part of your business. Proof of demand and potential for scaleīe sure to know what your potential investors do and don't want.Being able to show you already have revenue is a powerful thing.Įventually, look to merge your business plan with your fundraising plan and tie this to key milestones that you hope to achieve: Before trying to get too much money in the door, have a working product that people are paying for.

The Art of Startup Fundraising by Alejandro Cremades