Excerpts from an article by Sarah Ephron
There are many funding options for entrepreneurs, from government grants and funds to competitions, angel investors and VCs. As a founder it is your duty to understand them all as well as the advantages and disadvantages of each.
- Denzil D’Sa, founding partner – PPLCONNECT
A huge part of this process is storytelling. You’re constantly fine tuning your story, and getting better at telling it. … You need to create a personal connection. And you need to prove you’re competent and credible. The human dynamic is so important for people to trust you with millions of dollars.
- Kirk Simpson, CEO and co-founder – Wave
Raising money is a full-time job. If you decide to do it, you’ll likely need three to six months of full-time effort. The first step is to make sure your business is ready. A good rule of thumb is if you make an investor presentation and you wouldn’t invest in your own business, then you’re not ready.
Before you raise money, you should make sure you have one thing that is different from the other hundred companies the investors you’re going to speak with have seen that week. The thing that makes you different could be your pitch, your idea, your sales, your marketing, your team. … Maybe it’s your team’s experience or the differentiation of your product. But you need something that sticks out.
- Mikael Cho, founder
Raising money is not a factor of success, it’s merely a strategy we’ve employed to build the business as quickly as possible. The best time to raise money is: A) When you don’t need it; and B) When investors are interested in your business. Triggering A & B mean that you need to be sensitive to the businesses economics and always have a contingency plan for if and when growth money is unavailable.
- Michael Litt, co-founder and CEO – Vidyard