You get ONE shot at each Investor
Are you ready to make it COUNT?
Investors - whether angels or VCs - are swamped with meeting requests. To get a meeting, you need a pitch that will catch their eye, pique their interest. Then, you need to ensure that you maintain their interest level and take their commitment levels up a notch.
This is not easy - it is quite likely that they have seen similar ideas before. Also, they have probably seen every trick in the book to get them to take more interest in your company/idea - they are quite blasé that way!
We can help you with all the documents that you will require for your fund raising journey, besides helping you navigate your way through this process. It is a process - and, there are no shortcuts.
It is very easy to turn off an Investor, who may otherwise have been interested in your product or service - they have limited time to spend and tend to make snap judgements. Such decisions, if adverse, are quite hard to overcome - so, it is always best to ensure that you avoid any pitfalls from the beginning.
Your time is very valuable, too
Do you know which investors have interests in what sectors or segments? Whether they are currently investing or not? This is usually the biggest time sink for an entrepreneur - you could end up presenting to and chasing up investors who have no real interest in your company, but nevertheless meet you.
This could be for a variety of reasons - they are currently fully invested; they want to listen to any new ideas in a space they are thinking of entering; they are scoping out competitors to their existing investee companies.
Then, there are 100's of Angel Investors and VCs out there, with differing risk appetites - you need to be able to meet and pitch those who are most in sync with your philosophy, in terms of your business plans and the risks involved in execution of those plans. This would be the most efficient use of your limited time and bandwidth.
The risk you run with a scatter-shot approach, while raising funds, is that you could meet a whole bunch of investors, and none of them actually end up investing in your Company. So, you have wasted time and not achieved your funding goal, you may have lost some focus on your business, leading to loss of traction, and you may be running out of money now.
Cash, Valuations and Negotiations
How much cash should you actually raise? And, why? Many entrepreneurs slip on this question, especially since raising less cash means a lower dilution. Having a realistic business plan is the first step. Understanding market dynamics is the second step. The answer is, often times, counter intuitive. Talk to us and we will tell you what your fund raising rounds should look like.
What kind of valuations should you take? Take the cash or wait for a better offer? These are tough questions. It is hard to be completely rational when you are diluting equity - we all want to get the maximum amount of money for the least amount in dilution. The investor, however, wants exactly the reverse. And, investors are rarely under time pressure to make a deal - entrepreneurs typically. We can help you get real world answers to such questions, backed by our experience and data.
Who would be a better investor when you are spoiled for choice? We can help you with understanding the implications of differing term sheets/SHAs vis-a-vis the valuation that is being offered. What value will each investor bring to the table - what is optimal for your business at the current stage. We have deep insights in this space.