Startups looking to raise funds in an efficient manner should try looking at things from the point of view of financiers.
What do investors care most when deciding on where to put their money?
Funding Game founder Paul Grant names three key considerations.
First is getting enough evidence that a startup’s business concept may work, which could be supported by metrics like sales, number of customers and website visitors, Grant told media.
“These numbers need to be growing month on month.”
Second is the team. Did the team members come from a credible background with the right mix of skills?
Third, investors usually like entrepreneurs who can pitch the prospects of the business with clarity.
“Work on refining your pitch down to a one-page plan or a five-minute face-to-face presentation.”
It’s important for startups to spend a lot of time researching each investor they approach and to build relationships with the investment community as early as possible.
Startups are also advised to explore and stay open to different financing channels, including business angels, venture capital and crowdfunding.
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