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The Ultimate Guide to Fundraising: How to Get Ready, Find the Right Investors and Negotiate the Deal that Works for You

March 14, 2024

undraising is a daunting challenge, even for the best finance professionals, and downright scary for startup founders with no finance experience. According to Fundable and Entrepreneur, 565,000 startups are launched every year and just under 3% receive angel and VC investments. 

That is why we decided to dive into this subject in the next three months in three parts:

GETTING READY

Our first section is focused on what you need to do before you start looking for investors.

“Rome wasn’t built in a day” and it takes time to prepare for fundraising and make sure that all your ducks are in the row. You need a compelling pitch deck, a financial model adapted to your stage and business model, and incorporation and other legal documents. 

LOOKING FOR INVESTORS

When I meet first-time entrepreneurs, almost every initial conversation eventually turns to “How and where do I look for investors”? It’s the elephant in the room. It’s Everest all founders looking for funding must climb, whether or not they know how to rock climb and whether or not they have experience with extreme temperatures and altitude.

This is why our second section is focused on different approaches of looking for investors as well as how to understand their feedback and effectively address their concerns.

NEGOTIATING YOUR TERM SHEET

For any early-stage startup founder, there are several key moments that mark the trajectory of the company’s growth and serve as a testament to the founding team’s hard work. It could be the MPV launch, your first customer, and, of course, your first term sheet.

Sadly, not all term sheets are created equal and sometimes, as difficult as it is, sometimes it is better to walk away from a deal than to take it and jeopardize your company’s future.

That is why in the final section we focus on startup finance and situations that you should watch out for in investor negotiations.

GETTING READY

Getting ready for fundraising is like preparing for a marathon. It requires meticulous planning, strategic thinking, and the right tools in your arsenal. In this section, we delve into the essential steps every startup founder must take before embarking on the fundraising journey. From crafting a compelling pitch deck to ensuring legal compliance, we provide actionable insights to help you lay a solid foundation for your fundraising efforts. This part of the guide equips you with the knowledge and resources to navigate the complex terrain of startup finance with confidence and ease.

  • Top three fundraising mistakes

If you’re diving into the world of fundraising for the first time, it’s totally normal to feel a mix of excitement and anxiety. However, some of the mistakes are common even for the experienced founders. This video will guide you through the pitfalls and help you navigate the path to funding success and do it fast.

  • What do investors look for?

Once you decide to fundraise, it is important to understand the investors’ mindset, what they are looking for, and make sure you meet investment eligibility criteria. 

Investors aren’t just interested in flashy products—they’re after businesses with serious growth potential. While some may have noble secondary goals, like backing female-led ventures or green innovations, the bottom line is always about profit and managing risk.

Watch this video to learn  which five main criteria early stage investors use when conducting their due diligence.

  • How to make your pitch stand out?

It is important to tell your story the right way and to back it up with solid numbers you can justify. Public speaking jitters can strike even the most confident people, but for startup founders, the pressure is on a whole new level. You’re not just presenting for the sake of it— you’re laying your heart and soul on the line, pitching the culmination of months of hard work and passion.

In this video, we’re diving into four game-changing strategies to captivate investors and fast-track your funding journey. 

  • What do investors look for in your financials?

Finally, the numbers. Watch this video to understand how to create and use your financial projections so that you can explain to investors how you plan to turn your vision into reality. We will go over the most common investor questions, why they ask it and how to best answer them.

PART 2. LOOKING FOR INVESTORS. COMING IN APRIL.

PART 3. NEGOTIATING YOUR TERM SHEET. COMING IN MAY.

Stay tuned.

Still have questions?

We are happy to talk to you. Book a FREE 30-min consultation now by pressing the button below and, as a bonus, we will send you a COMPLIMENTARY financial health checklist.

Press the button above to accelerate your fundraising process. We will help you create a defensible valuation and financials, investors will take seriously!