5 Tips For Getting Investment Ready
Hi Guys,
In this video I provide 5 tips for getting investment ready. As you move from the Minimal Viable Product phase to the Product Market Fit phase you are more than likely going to require capital to achieve the next phase of growth in your business.
Therefore, if you are going to go out and raise capital you will need to be 'investment ready' Here are some tips to help you.
Make sure you are raising capital for the right reasons.
a. Your pitch is a critical moment in your business. Make sure you are raising capital because you are ready to raise capital not because you need to.
b. Stress test the need to raise capital against continued bootstrapping .
c. Decide how much equity or debt you are prepared to accept.Be Clear on the type of investment you are after.
a. Understand how much funding you need.
b. Choose the best funding model to fit your business.
c. Do your research on potential investors. Make sure you align with them and they align with you.
d. Understand that timing can play a massive part.Have something tangible to demo.
a. Demonstrate Problem Solution Fit.
b. Aim for emotional attachment to the solution and business.
c. Show working MVPs if possible.
d. Show evidence of product market fit.Have your investment collateral ready.
a. Elevator Pitch.
b. Pitch Slide Deck (soft and hard copies), include the ‘ask’.
c. Business Plan.
d. Financials (P&L, Cashflow).Remember, investing is emotional.
a. They are investing in you, not just your business.
b. Put your best foot forward including your team.
c. Be prepared for negative feedback and tests.
d. Accept criticism but don’t be a pushover.
e. They will be trying to gauge the personalities of you and your team.
If you like this video, please upvote and follow. If you didn’t or you think there are areas for improvement, or there other topics you would like to see covered, then please leave a comment below
Take care,
Alan
Alan Brannigan
Husband, Father, CEO, Entrepreneur, Tech-Geek, Crypto Enthusiast, Believer in Freedom and Liberty
Email: [email protected]
Steemit - @nalabra
My video is at DLive
So given your 5 points how do you think EOS was able to raise so much money? Surely their success condraticts a lot of your points definetely 2.a and much of 3
I guess I should have been clearer but my points relate to traditional forms of investment. ICOs or Token Generation Events are a new form of investment vehicle that may or may not prove viable in the long term. I'm a fan of and investor in EOS but they have definitely benefitted from the hype around ICOs since a year ago.
I agree with you also that much of these ICO businesses are raising large amounts of cryptocurrency with little tangible evidence of their solution. That is why I question the long term viability of that type of investment vehicle.
Remember too that Dan Larimar has a proven track record so I doubt he would struggle to raise traditional capital either. My video was intended for those just starting out but again I wasn't clear on that either so thank you for bringing this to my attention @crypticat.
Thanks for the great response, I can see you're definitely knowledgable about venture and seed stage capital, your points are excellent. Dan Larimer is one of the best programmers and Steemit is an amazing platform. I'm a cautious investor and am always focused on red flags
i liked this point
Remember, investing is emotional
its the most important
When it comes to scaling up a business, it’s often at the critical funding hurdle where they fail. Here are six essential steps to getting your business investment-ready.
Investing emotionally is what I have experienced alot.
It touches the heart , and you can't just figure out what the wrongs her.
Hoping to get profits in return we want to break limits.
Better to invest than spend
Nice points from you @nalabra
steemian mantra
$100STEEM
I believe that if we follow these steps in detail we can achieve the desired results
Hello, your advice is for traditional businesses and they are good, but if I'm in steemit it's because I want to go further, I have a good project, it's tangible products, but they also include technology, I think I can get a work team here, I need programmers, designers, experts in laws and blockchain. What will be better, create my start up first or talk in steemit my project to try to get a work team and investors?
Hi @torek, it really depends on how you want to structure it. People typically act in their own self interest so you are going to have to offer them something in return.
It sounds like you are looking for collaborators. If so then you will need to entice them to collaborate, i.e. are you going to pay them in either fiat or crypto currency? are you going to offer them equity in your venture? are you going to offer them a revenue share scheme once the product is launched?
If I were you I would try to figure out what the resource requirements are and have a clear description of each of those roles. Then I would decide on how to acquire those resources per the mechanisms I outlined above.
Once you have that then it should be pretty clear on how you need to proceed in terms of investment etc.
excelent information, very good video thanks
Have you ever received a traditional bank loan as a form of financing or have you always sold shares to business angels? My experience is that being bank-funded early as an start-up is very difficult.
Great video!
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