Summary: Don`t have savings or investors who could invest in your small startup business idea? Take a deep breath and don’t give up on your dreams just yet. This article will tell you simple fundraising techniques for your business.
According to a report by Fundable, around 57% of startups take out loans, and 38% are launched with support from family and friends` money. But if you don`t have either of them, you should not give up on the business launch.
In 2021 the global funding rose by 157% according to data by CB Insights. One of the major reasons is that nowadays startups have entered the market at huge value, which gives high returns to their investors. Also, more and more people are ditching the traditional methods of raising money. As a result, many nontraditional early-stage funders are flourishing: mutual funds, hedge funds, and private equity firms.
But when you are a newbie attracting funds could feel like a major task. It`s hard to get into an investor`s sight. Even with the most convincing pitch, you might fail to get the investment.
So here are three essential steps that as a startup you must take to build awareness and increase the chances of raising around.
1. Establish Yourself
Imagine you have crafted a great mail and it gets the attention of a potential investor. The first thing that she does is Google you. But, finds nothing on the internet! So now what do you think her response would be? As long as your name is not loud enough to be well known in the industry, your emails will probably have a low response rate. And this could also affect the pitch conversion.
To get the attention of the right investor, you must establish yourself as a specialist who understands the market. You can use the power of content to prove that you know the burning problems of the consumers are, and focus on the benefits of your products. You can utilize the PR activities with blogging, guest posting, YouTube videos, podcasts appearances, or even LinkedIn blogging.
You can also consult with the business motivational coach to take expert guidance on the right way to do it. You can start with five different publications and a few videos initially.
2. Do Your Homework on Potential Investors
Abraham Lincoln is often quoted for having said, “If I had eight hours to chop down a tree, I'd spend six sharpening my ax.” It simply means that you must do your homework to get the desired results. In the business world, it means doing research not only on your target market but also about your potential investors. Each angel investor and venture capital fund investor has its specialized area, stages of investment, or even more specific metrics.
Look for investors who have invested in your niche and research everything that you can find about them. You can follow them on professional websites. Find blog insights; follow public announcements and information on the websites. You can also seek social media publications from investment managers. You can then put everything in one place to create a nice contact database. You can use this database for more accurate targeting in the future. If you want to expand your network base, you can consult the best business coach who can help you with building a database.
3. Use Content Marketing & Targeting
If you have utilized the publications and media appearance, you can place the links to your resources and move on to the marketing part. Set up targeting publication advertising, so that potential investors from your contact base can discover it.
Now, the best thing to get the attention is to continuously work on the product, improve customer experience, and update it to make continuous improvements. It will help you to raise funds for your startup business.
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