Despite the changing economic and entrepreneurial landscape, the advice for how to give your startup the best chance at raising capital stays consistent. Venture capitalists search for up and coming startups that offer one-of-a-kind value propositions, who have the strategy in place to grow, scale, and ultimately give a significant ROI to investors.
There has never been a better time to work on your startup’s positioning if your long term goal is to raise funds – whether you’re raising a seed round, a Series A, or a Series B. A recent 2020 report from Carta found that the average length of time between a seed round and a Series A is 22 months and the average length of time between a Series A and a Series B raise is 24 months. One thing’s for sure: raising money is a long game. But by positioning your startup according to these tips, you’re likely to find more success more quickly.
How To Position Your Tech Startup To Raise Funds | Stephanie Burns – RAWPIXEL LTD.
1. Prove That Your Company Is Disruptive
“Disruptive” is that big buzzword that can sometimes feel elusive and reserved for ‘unicorns’ like AirBNB or Uber. Simply, ‘disruptive’ refers to a company that is innovative and groundbreaking. In short, what are you doing that others cannot? How are you changing your industry with your startup? Jason Humble, CEO of Humble Capital Group, specializes in vetting and investing in tech startups, and to him, this disruption is the key indicator of whether or not he should invest.
Salesforce BRANDVOICE | Paid Program
Five Lessons On Customer Experience From Pharma Giant Eli Lilly And Co.
SAP BRANDVOICE | Paid Program
How The Chickasaw Nation In Oklahoma Used Data To Protect Its Community From COVID-19
Deloitte BRANDVOICE | Paid Program
Five Lessons From The Pandemic Light A Path Forward To The Future Of Work
“Focus your pitch and your value proposition on what everyone else is not doing,” Humble advised. “How can you prove that your company will take over market share and cannibalize other companies in your industry?” Humble has invested over a million dollars in funding in several tech companies, and is currently invested in a company called Digital Air Technologies that’s doing just that with its automation technology. “Investors want to make sure that they’re investing in companies that are proprietary,” he noted. “Proprietary always wins. Go for legacy rather than money as you build your company.” Focus your pitch on how you are different, rather than riding the coattails of similar, successful companies. In this case, proving you’re the black sheep is an advantage – it’s exactly what they’re looking for.
To break the earth’s stratosphere. They can get you to the moon and beyond with their investment, but you first have to prove you were heading there on your own.