As a startup founder, fundraising is an exciting step in the growth of your business, but it can also be filled with potential challenges.
If thinking about fundraising and negotiating with investors makes you nervous, don’t worry, as in this blog post, we’re sharing some tips and strategies to help plan and prepare for your fundraising process.
#1 Focus on building your Minimum Viable Product (MVP)Â
A minimum viable product (MVP) is the simplest version of your product, with just enough features to test whether your target audience will actually adopt it. If done well, the basic product with additional features is able to develop into the final product as it gets attention from both customers and investors.
READ ALSO: 5 Steps To Building A Successful Minimum Viable Product (MVP)
#2 Get your pitch deck in order
A good pitch should show that your product or service is desired, feasible, and financially viable. From the problem you are trying to solve, key features, benefits, market opportunity, and the founding team, your pitch must feature the most important aspects of your startup. Overall, keep your pitch deck concise, clear, and compelling to appeal to investors.
#3 Master the art of storytelling
Storytelling is a technique to connect with customers and investors on an emotional level. Storytelling will not only help you to capture and hold attention, but it will also help to shape how your startup is perceived by others.
#4 Create your fundraising plan
When you need funds, investors may not be interested in investing; therefore, it is advised to plan ahead, as the entire process does take time. It is best to raise funds when you don’t need the money, as you don’t have to face the pressure of urgency. Ideally, you should raise funds six to nine months before you run out of funding.
READ ALSO: Understanding Startup Funding Rounds in Malaysia
#5 Shortlist your ideal investors
Approach investors with whom your idea will resonate on a personal and professional level. There are very few who would be keen on early-stage startups; therefore, it is crucial to know whose door to knock to save time and resources.
#5 Start building relationships
Building a strong community of support among the startup community is vital to your success. Networking events, conferences, and getting to know other founders are great ways to build relationships ahead of raising funds. Remember that these relationships will take time to nurture, so it is best to start early.
Are you an early-stage startup at the idea or MVP stage?
Alpha Startups™ Pre-Accelerator has a place for you! Whether you’re looking to kickstart your startup, boost slow sales, or scale your growth, join our award-winning accelerator programme to take your startup to the next level, bit.ly/AlphaStartupsPreA
Alternately, you can also pitch your startup to us on the Pitch Tuesday session, where we welcome startups from the pre-seed to pre-Series A stages, bit.ly/1337_pitchtuesday
See you there!
