No matter what stage of the start-up cycle you’re in, you’ll need continuous funding to allow for progression and expansion. Raising these investments for each stage can seem daunting at first, but there are tips and tricks out there to help your efforts and further increase your chances of grabbing that important investment.
Here’s our guide to start-up funding stages and creating the best pitch possible. Whether it’s knowing your business thoroughly, asking at the right time, or being aware of your target investors, we’ve got you covered below.
Be Aware of Your Funding Stage
It’s important to recognise how mature your product is and whether or not you are earning revenue, as this will determine where you are in the funding cycle. It’s essential that you know where your business is in terms of funding stages if you hope to secure investments. If you engage investors by demonstrating self-awareness and reflection then they will feel much more confident about doing business with you.
Ensure You Know the Reasons for Your Funding
You’ll need to show an understanding of the requirements of each funding stage, and your requested amount will need to be appropriate to your business targets. Make it clear to those you’re asking that you have a clear direction and reason for investment.
Provide a pitch that is clearly costed, with a strong vision, personality and self-evaluation. You’ll need these qualities to attract investors.
Be Smart About Your Targeted Investors
It’s a good idea to research your potential investors.
Make sure you’re aware of their risk appetite and general behaviour when investing at different stages. Your finance needs, current progress and business milestones will determine the types of investors you’ll appeal to.
With each funding race, you’ll be presented with numerous options, and asking for the wrong prices or inappropriate amounts may seriously damage your efforts. Be wary of who you’re attracting, what you’re asking for and what’s best for each stage.
Request Your Funds at the Right Time
Determine what you’ll need to grow and expand onto the next stage of your business. If you mistime it you may not have enough to offer later stage investors, but if done successfully you’ll be able to reach each long-terms stage and better ensure continued expansion.
Timing is everything when it comes to investment requests, and you’ll want to ensure that you’ve picked the most suitable time for your business. Growth and expansion will need to be sustainable as you progress through funding stages for potential investors to be interested.
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