Making the Early Stage an Easier Stage - Together
It’s a time consuming circus. The startup circus is filled to the brim with buzzwords and guru’s and success stories and demo days and pivots and investment rounds. Let’s be clear — a lot of it is hot air, populated with wanna bees stealing time from the actual business-building we should be doing.
There are different ways to build a global winner and don’t be fooled by the formulaic preaching’s we are bombarded with. If it were as easy as 1–2–3 we’d all be super successful already. Strong founding teams tend to have their own secret sauce to growth, however capital injections via revenue or investors is a must.
Raising angel capital is no picnic — its a dance. There is nothing streamlined about the dance of raising capital from early stage investors and angels. Don’t think this is a rational or objective process, on the contrary, risks and emotions run high. As a founding team you need to play the game carefully to create the right attention, at the right time, from the right influencers and with the paradox of full force and restrainment. #FOMO. Suddenly stars will align and someone or something validates your business resulting in that everybody wants a piece of the pie. Laughable but predictable.
Understanding risk — really understanding — is a tricky one and clearly some investors tend to make flippant comments about risk and more often then not lack self-awareness of their real appetite. Humans usually don’t want to take risk and they’ll rationalize investment decisions — a great space, phenomenal entrepreneur, it’s an opportunity to learn, family friend, great advisory board to hang out with… Your job is helping them with the mental process of mitigating risk, formulating the post-rational arguments and ushering them to a place where they just have to invest in you.
When in doubt they’ll say No.
Pre-success requirements — Mrs/Mr Right. First you’re labelled crazy and then genius. In the run-up to being acknowledged as a genius you need to carefully choose your advisors, partners and investors. Above and beyond money they should inject energy, give of their time, challenge you with their experience and spoil you with love. The right angel investor can make you — the opposite might also be true. The discussion about smart and dumb money is valid and you need to figure out to what degree you need support and door opening and to what degree you “just” need capital.
Let’s translate this into practical terms — How to approach and excite the right angel investors?
The conundrum. Here’s the annoying reality, once you have identified the right angels, cold calling doesn’t work and referrals create stress… 1) if you cold call you come across as desperate and poorly connected as the going consensus is that you should be referred. 2) But at the same time angel investors are bombarded with referrals and feel inbox-overload.
Try Together. The Together matchmaking platform solves two main pains — firstly it increases chances of a great match by showing you off to a bigger pool of investors that fit your profile. Secondly it acts as the referral but also give busy angels a sense of control as they approach you and not the other way around.
Together hacks. The Together platform is smart but there are additional hacks to improve success rate. Uploading a 2min personal film you’ve recorded on your phone gives you an edge and increases chances angels will ask for a meeting. And the Together team will be working with enticing emails and notifications to remind angels of you and the opportunities in the app.
The investors downloading the app will be a mix of dumb and smart money, small and sizable tickets, generalists and specialists… It’s a jungle out there and be clear what you need to grow your business and Together will work to find you the right partners.
Alpha/Beta test in Sweden (Q2+Q3 2016) and then rolling it out across Europe. That means startups from everywhere can sign up now but it’s actually more relevant for Nordic companies as they angels downloading the app will be mainly Nordic to start with.
It’s an MVP, we’ll iterate the beta app and when we have Product-Market-Fit we’ll scaleup city-by-city. Coming to startup scene near you.
Signup now together.eqtventures.com
It’s a Match!