📝Make a list of investors
Think of potential investors and highlight those who actively put money at your startup’s stage or are focused on the industries you’re engaged in.
Pay also attention to the investors who have lately launched their own funds or just started business angels activities. List all them in an excel-table to keep it visual and build up a fundraising strategy.
🤝Create an intro funnel
The most efficient way is to find a close acquaintance who could introduce you to the target investor. However, in most cases people don’t have great networking opportunities.
Set a deadline for looking for those through which you could meet the investor you need. Try to build meaningful connections and get acquired with right people. Establish a smart outreach of investors to increase your chances.
Don’t rush into talking to the most desired investors. We don’t have any doubts you know your startup inside out, but only practice makes perfect. Talk to 2-3 investors who are not so important for you. If everything goes well, you will have follow-on investors or just a backup. If you fail, it’s still a valuable experience.
🤔Put yourself in the VC's shoes
It is important to understand that in 80% of cases, venture funds don’t have a KPI to make a deal or a certain number of transactions. Their aim is to invest capital within five years, so they have time to think. For VC, it is better not to make a good deal than to make a bad one: unlike you, they are in no hurry.
📊Allocate resources and remember the stats
A Docsend study says that in order to raise $500-560 thousand on pre-seed, you need on average:
⁃ to contact 58 investors;
⁃ to show an 18-slide presentation;
⁃ to hold 30 meetings;
⁃ to spend 15.5 weeks on all this (3.5 months, for 60% of projects — up to 12 weeks).
It is supposed take from three to six months to raise funds, and you will have to do this almost full time. It is important to be ready for this yourself and prepare the rest of the team, which will have to partially adopt the tasks.
Remember that any entrepreneur receives dozens of rejections and venture funds frequently mistake.