Tips For Founders Seeking Startup Capital

One of the most difficult tasks for startup founders is persuading investors to support your business. For most startups, investors are the key to success. You need someone to spend money before your startup will make money. So, how do you convince people to invest in your startup? Here are a few tips:

(Curated from Tech.co)

• Treat your potential investors with respect and be honest with them. Instead of treating them like a bank, think of them as another resource. Investors know what it takes for a business to find success so don't hesitate to discuss ideas and options with them. 

"I love honesty. I want to dig into the problem with the founder and think about how to grow the company and build out the solution. If you're overselling me, it means you see someone who needs to be persuaded to part with cash, not a partner for sharing ideas." 

• Also, because investors know the business, they will also know what questions to ask. Make sure you're prepared to answer them. There is no such thing as being over-prepared when discussing your startup's future with potential investors. 

"Before seeking any investors, have a full diligence file prepared with all possible information they might need: deck, bios, financials, product review, you name it."

• Communicate with your investors on a regular basis. You don't want to smother them in daily updates but make sure you keep them informed. Leaving investors out of the conversation will give them the wrong idea about your startup and you'll also be denying yourself an important resource. 

"It's a happy medium: too often is desperation, but a three-month drop off in communication is also the kiss of death. If you only call me when you're hunting for capital, it's not a fit."

As long as you show investors you know what you're doing and you appreciate their input, getting investment shouldn't be a daunting task. If you have any questions about finding investors for your startup, feel free to contact us.