Last week Rimon Advisory was part of a dynamic panel that was put together with the aim of giving Startups a few “Insider” tips on how to raise capital effectively. The event was hosted at WeCo (a collaborative co-working space for Startups). Several different perspectives on the do’s and don’ts of capital raising were shared from Investors, Crowdfunding, Consultants and successful Startups.
A few great tips came out that we thought we would share:
Research the investors you are pitching to– who are they and what do they want to see in you? Understand what they are looking to fund. Tailor your pitch accordingly
Spelling or Grammar mistakes– be careful when responding to e-mails or presenting your idea that you present in a professional manner. Spelling errors is a huge turn-off
Reply in a timely manner– don’t be lazy and get back to your investors ASAP
Ask for feedback– rejection can be a positive thing if it helps you refine your pitch and your model
Don’t demanda 6 figure salary– you have to be willing to give up something for your idea, that something has to be financial (at least initially).
Marketing budget– often overlooked when pitching to investors and shows a lack of understanding of how to allocate your funding
Grant funding is a great way to help cash flow– without giving away equity. You can also leverage grants to raise private capital
Financials– even though you won’t get it 100% correct, make an attempt that shows you are well thought out
Invest effort in your pitch deck– you only get one shot
Ideas are worth nothing– you need to have done something to bring your idea into reality
Raising Capital is only the beginning– then the hard work really begins!
Don’t over raise– too much capital can lead to diversion from the core focus and ultimate failure
Own the capital raising process– it’s fine to get assistance from external parties but don’t hand it over. Your timeline will be severely disrupted