The best fundraising tactics lie beneath the surface.
If we want to ensure funds, we need to excavate them.
Last week, we delved into risk management tactics used by investors.
We talked about the fact that investing in a business needs to be rational.
It shouldn’t just be based on a hunch.
We should always do our due diligence.
We can trust our instincts to some degree, but we should hedge the risk at least.
A couple of days ago, we had a call with a promising prospect which was referred to us by one of our partners.
It all seemed great within the initial call until we found out anomalies in the story which unravelled quickly.
Intentional or not, prospects should always be ready with the right numbers in front of them.
Securing investments when your story isn’t straight is difficult.
No matter who referred whom to who, we must always assume the worst.
We need to do our due diligence without hesitation at any cost and then give feedback.
The best fundraising tactics could be mustered when we know:
- What to have (documentation, cold-hard numbers, etc.)
- What to know (who to ask, what to ask)
- How to use our advantage (cost-leadership, right partnerships, etc.)
- Who to ask (finding the most relevant investors and mentors)
When we don’t know everything
Easier said than done, excavating the best fundraising tactics could be difficult.
We sometimes need help, this is why we created a masterclass for fundraising with Ah! Ventures.
The masterclass is there to ensure the right startups get the right funds from the right investors.
- The creation of the right documentation (PPMs, SAs, term sheets)
- Speaking the investor language
- Understanding how investors evaluate startups
- Crafting the perfect pitch
Same rules apply for VCs, PEs, HFs, accelerators and incubators, where we are relatively unknown to the outside world and want to look for the best deal flows out there.
We might also want to bring in new investors on board or found a fund dedicated to larger investment rounds.
Let us entertain you
We might be running an intimate gathering and entertain the right people:
- The portfolio companies (which are looking for Series A or Series B funding)
- Our Investors (to rekindle the old flame)
- Partners (to allow them a mixer with the startups and investors)
- New deal-flows (bringing in new blood: startups, VCs, angels, LPs, etc.)
Naturally, we need to look for the right venue in the right geography; we need to find out what people like and dislike.
We also need to think about who we invite and how we ensure that the event would become a success (and could become a series of relevant events to boost our brand).
Sometimes, ensuring funds from a partner/client could be a smarter move than speaking to an investor.
The design partnership or overall funding of the project could be beneficial for both parties: one receives data, the other creates more value.
Whichever the case is, we need to find our strong-suites and if we can’t, we need to speak to the right people to ensure we can raise the funds needed to operate correctly.