Stressed about raising funds for your startup? There are multiple ways by which startup founders can approach investors for fundraising and get noticed by those with the capital you need to get to the next level.
Be at any stage of your startup business, no matter how outstanding your idea is or your product is, how lean you can operate, and how to expand your business is, You will always need more capital and financial leverage, it's a necessity!
Even the best-funded and hyper-successful billion-dollar startups have been engaging in more fundraising rounds than ever before.
Self-Funding or Bootstrapping
Self-funding, also known as bootstrapping, is one of the most popular and effective methods for fundraising, especially if you own a startup. Startup founders usually face challenges getting funding without first showing some traction and a plan for potential success. One of the best ways to initially raise funds is to get your family and friends to contribute.
This will be easy to raise due to fewer compliances, plus fewer costs of raising. In most situations, family and friends are flexible with the interest rate.
Self-funding is considered as a priority by many startup founders due to its long list of advantages. On a developed stage, investors consider this as a good point. Bootstrapping is most suitable for initial funding requirements. Some businesses need money right from the day-1 and for such businesses, bootstrapping may not be a good option.
Online Fundraising Platforms
In the last five to six years, the world has seen several online fundraising platforms, specially designed to help startups raise funds across the globe. These online platforms are very well-connected with sophisticated and accredited individual investors, angels, and even banks and funds looking for new ways to deploy capital.
Popular online platforms run from peer-to-peer lending sites that grant business loans to donation-based, debt and equity crowdfunding portals. For equity crowdfunding platforms the most popular platforms are the following:
Even if you’re not using online platforms to raise funds, it is way beneficial for getting your business noticed, to a large audience that uses the internet. The key is finding the right match in a platform for your venture and needs, as well as being realistic about what it will take to make a campaign work.
Get Funding From Business Incubators & Accelerators:
Startup businesses must look out for Incubator and Accelerator programs as a funding option. Majorly found in metropolitan cities, these programs help out hundreds of startup businesses across the globe, every year.
Though used interchangeably, there are few fundamental differences between the two terms. Incubators are like a parent to an infant, who nurture the business providing shelter tools and training and network to a business. Accelerators do more or less the same thing, but an incubator assists a business to walk, while an accelerator helps to run, to expand a business.
The potential of a good email is undermined a lot of times, especially when it comes to pitching potential investors. Simple emails have proven to be able to get the attention of notable angel investors and VCs. They’ve even been responsible for the launch of some very important and notable startups.
How we at Easy To Pitch, help connect you to your potential investor-
The main problem investors face is shortlisting the right kind of startups from the pool of the same. This is where we come in, we shortlist startups according to each investor, and make sure that whichever startup we are sending to investors, is according to their thesis.
Every investor has a certain kind of investment thesis according to which they invest.
The investment thesis consists of Preferred industry, preferred stage, preferred valuation, preferred ticket size, and several other factors. Investors get hundreds of pitches every week, out of which 90% are irrelevant to them. We make sure the decks they get from us are according to what they are looking for.
The main reason why startups fail is that they are too broad within a market. The same goes for investors. As an investor, it’s important to narrow down your search to a market niche. A niche targets a distinct industry segment in which investors are much more likely to find startups and businesses that solve specific, little-serviced problems. We at Easy To Pitch, narrow down your search to a market niche to find investors for their desired startup.