Tips for start-ups raising capital

  • By Gary Shapiro
  • 28 Jul, 2015

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 demand   a 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

Happy Hunting.

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