Fundraising for start-ups
In addition to equipment, markets, and product release methods, there is also a significant factor in the prosperity of start-ups-money. If you are working hard to implement your donation plan, this article is for you.
Communication is the most important recommendation.
Why should investors invest in startups?
To understand why investors invest in startups, I would like to remind you of two important investment concepts:
Never waste money; they will only bring you 5% of profits. a) The concept of risk-to-profit: the higher the risk, the higher the return, and vice versa. ; Although there may be risks at the beginning, if successful, it will perform very well.
b) Investment portfolio: Large investors invest in various types of assets at any time, depending on their risk profile and propensity; some or most of them are stable, but low-yield investments, and some are medium-risk investments, such as blue-chip stocks, And small investments in high-risk, high-yield companies.
Hedge funds and angel investors are essentially trying to add these high-risk, high-yield assets to their portfolios. This is not all their money, but it can be part of the game they like to play. Many companies have started to invest in each company at a lower cost, depending on the convenience of the sponsor.
Even if they know that nine out of ten will fail, a successful company can catch up and still do well. For example, 1% of Paytm shares 6 years ago, you could buy 10 shares, and today you can earn 1.5 billion rupees, offsetting the other 9 bankrupt companies, 0.9 rupees each (currency 9X10).
How can one get investors' attention?
1.If your product gets media attention, it will attract investors.
- Attend as many meetings as possible. You will meet many investors there.
- Try to use your email address to let you know the status of the product.
The best way to get investor attention is to build a good business. It's like a scale factor for everything you do. Do you want to make a bad deal in a meeting? Investors are not interested in this. Do you represent large companies in meetings? There will be more than a dozen meetings and phone calls next week.
If possible, change your future business (don't be late). Your business plan should include a resume, market evaluation, product/service details, sales and marketing, competition analysis, operations/details. Capital and risk, investment and information sources, and a summary of related research. Your business plan should be complete and clear. It doesn’t have to belong, but it should be comprehensive and cover every important aspect of your business.
How to attract investors?
The best way to attract investors is to get recommendations from people they trust. If this is your first time starting a business, I suggest creating something that will impress people. If they like what you are building, they will definitely help you.
Participate in TiE, Seedcamp, TC Interrupt, and other startup activities to be online. Another good way to attract investors is to join many startup accelerators, such as YCombinator, AngelPad, Techstars, etc. You can find what you like.
How to find investors?
It is like IT trying to find investors. It really depends on where you want to start. You know, investors are always looking for companies with rapid growth potential (creatives, technology). Take high risks (stocks). To overcome this problem, your business needs good growth opportunities. You can find investors by showing them long-term growth opportunities. Look for investors in your industry.
Additional tips for startup founders
Money is king. Try your best to save money and learn the art of self-optimization: do something with little or no money.
When your income continues to grow and your time value becomes very important, find the turning point. In this case, it is important to delegate less important tasks to others, such as B. part-time employees, interns, etc.
Your product or service will help your company grow.
And you must take a good rest and sleep well because you are about to start the marathon.
All in all, you have developed an investment platform for potential investors, where you can share your ideas, interests, business plans, and suggestions with investors and explore how you can communicate with potential investors when you or your equipment is not equipped. Ways, please call the necessary experts. He began to communicate with potential investors.
In conclusion, Keep trying until you press the button to attract investors and then achieve your goal.
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