The Art of Startup Fundraising

Structure your business for investment and success

Instructions

Recruit and develop an experienced and talented management team.
Identify your limitations and bring in managers who can perform specific tasks better, so you can oversee other aspects of the business.
Hire an experienced corporate lawyer to organize your corporate structure.
Don’t cut corners on legal matters. A qualified lawyer can deal with all facets of your start-up’s legal obligations, such as issues with intellectual property rights, disputes, etc. This will avoid scaring a potential investor away.
Build a network of helpful advisors.
You could make connections with other businesses, suppliers, a CEO, etc., or you could try an entrepreneur network like CoFoundersLab. You may also try securing a lead investor and appointing them first as an advisor. This will be a great opportunity to start working together, and then, over time, they can invest and lead your round.
Make it difficult for an investor to turn down the opportunity.
You can do this by delivering a confident pitch, demonstrating decision-making with conviction, showing the investor you are continually improving your start-up both conceptually and organizationally, and generating some buzz in the press to get people talking about your start-up.
Highlight why your start-up is special and outline your competitive advantage to investors.
Identify one or more competitive advantages and be ready to pitch them confidently to an investor. Do you have a conceptual, technological, or cost advantage?
Calculate a solid figure in terms of the valuation of your business.
You should know what you are willing to sacrifice to make your start-up a success. If you do not have a lead investor, don’t mention the valuation of your business. Talk instead about the valuation of other competitors and let that potential lead initiate the negotiation.
Ensure you have a clear vision and direction for your start-up that will impress potential investors.
What do you want the company to achieve? What niche do you want it to fill? What is the end goal for you and for your investors? Formulate estimates based on actual facts, such as market growth and consumer need, so that your vision is realistic and achievable.
Create a list of frequently asked questions and have your responses in a form you can quickly access.
Most investors will ask you the same questions. Having FAQs to hand ensures you are prepared for future meetings and calls