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How do some startups seem to raise so fast?

Derek Watson
Derek Watson

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Startup opportunities: Fitness meets Gaming in the metaverse

💡 How do some startups seem to raise so fast?

 

➡️ The reality is that they have been preparing to raise for much longer than we realise. Raising money when you don’t need it is raising from a position of strength.

They have a process that allows them to be prepared, communicate and engage with investors regularly.

✅ This is a way that works for founders to do so:
Step 1.
➡️ Build an investor list.
Not a deeply qualified list, but make sure it is the correct industry and vertical.
➡️ Create a newsletter for stakeholders and potential investors.
Cover the good, the bad and the ugly, industry updates and trends, what the short-term plan is and ask for any advice or help.
➡️ Use social media to build a public profile for you and your mission.
Start vocalising your message in public, who you are, your story and what drives you and your business forward.

Step 2.
➡️ Get investor ready. Being ahead of the curve drives the process.
➡️ Pitchdecks. Short and clear. Your ongoing communication will help with this a lot.
➡️ Fund raise strategy and funnel.
Moving through this process is a dedicated and high-velocity job.

💡 It is essential to be ready here. The communication can drive inbound interest asking to dive in further with a view to investing.

Step 3.
➡️ If you have been fortunate enough to secure interest (maybe a commitment), it is time to close out the round. The lead will also help with this process.

➡️ Announce your round and start booking meetings with highly qualified investors.
One way or another, you will have built some relationships to kickstart the process and create some FOMO.

✅ Investors know who you are and what you have achieved; this makes the process much shorter. Pitching and conversations are forward-looking, and they can complete DD far faster.

The hidden process and hard work make it all seem that fundraising is super fast and easy, but the reality is ☝🏼

Please share your insights and thoughts, and let’s build a better Startup ecosystem together.

for the ❤️ of startups

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