As a first-time entrepreneur, you must have been rushing from one end to another desperately to raise capital for your startup.
It isn’t so easy indeed. But it’s not impossible too provided you can identify your most suitable tools to raise capital.
You have to understand your business properly before you approach an investor. The current status of your business is the biggest factor to determine which investor you need to approach.
- If you are entrepreneur with a unique business plan only with no milestones achieved yet, your friends, family and the angels can be your most suitable investors.
- If you are an entrepreneur with a prototype or a group of beta customers, you can approach the early stage venture capitalists.
- If you have a proven product/service, a smart and efficient team and a group of trusted customers, you can approach the later stage venture capitalists.
- If you have achieved the position where you have a sustainable revenue growth and you are expecting profits in the next 1 year, then the public markets can be a suitable tool to raise capital.
In any case, there’s nothing like being able to finance your business with your personal savings. If you can contribute at least 10 to 25% or even better if 50% from your personal savings, you will be in a much better position while sitting in front of the investors.
One of the most important tools to raise capital, that can give the biggest boost to your capital raising effort, is a successful pitch. Try to have your pitch ready at all cost and make sure you summarize everything so that the message you convey is swift, interesting, engaging and time-saving.
Whatever tools you have in your arsenal to raise capital, make sure you use it actively; no need to wait for the investors to ask for it, just come up with it and show it to the investors. These things are essential to make the investor realize how much you are prepared and devoted to raising capital for your startup.
There is another tools to raise capital that can indirectly help you in your fund-raising campaign. It is nothing but an intelligent network that you must become a part of. Becoming a member of such a network will bring you close to your potential investors or buyers, sellers and financial advisors of the startup eco-system. It will not only save your time but will also enable you to increase your contacts and build new business strategies and most importantly, approach only the right investors (i.e. those who are interested in the sector you are dealing with).
Merger Alpha is also an intelligent networking operating in Singapore serving as a common platform for buyers, sellers and investors to acquire, sell or finance private companies.
To know more on tools to raise capital or you feel interested to become a part of this community, feel free to visit http://mergeralpha.com/.
Happy capital raising!