Some tips for entrepreneurs seeking investment and how they can best prepare for raising capital?
- Never show up at any meeting without ever having done your homework first. It contributes to making you stand out above the others. Integrity and honesty are important. Don’t make stuff up and be upfront about the reality of your progress to date.
- Be selective about the investor that you are seeking. Look for the right fit and those that can fill the gap for you.
- Be genuine with a story on why you and the team are the ones who can make the magic happen. Present a coherent story on why you can make it happen and how your business will make a difference.
- Have clear plans and actions for the next phase. Know how much you wish to raise, to do what, which instrument you offer, what is the valuation/value cap, discount, and interest. Know your endgame – what is your exit strategy?
- Have a clear initial validation of your business idea in place. Investors need to see that there’s a market for what you want to sell.
- Find out as much about the parties you are pitching to so there is a connection and genuine interest to understand them. Also helps to understand their investment criteria.
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About the Author
Prem Chand is Principal and Managing Director at ananda advisory, a boutique advisory firm that provides bespoke services to businesses at all stages of the business cycle in growth, value creation, commercialisation, go to market and market expansion. He is a director at Hunter iF Limited and Chairperson at Hunter Angels Limited. Prem also provides mentoring services through several Accelerators and Professional Associations.