Finding the perfect match!
(To get you funding)
There are thousands of investors. However, each founder has a limited time. And most end up not raising money at all. The question is: how do we raise capital? Is there a process that can help us navigate this multitude of options? Here’s what I believe:
Startup financing has been a rapidly growing field, both supply and demand have risen exponentially. There are several thousands of VC funds and angel investors, yet a founder has limited time available to raise an investment round. So, here is a guide to make every minute count and thus allocate more time on what is vital, your product.
Finding the right investor is probably of similar importance, as finding the right partner. There exists an investor who is a perfect match to your company. When you find him, the chances are that you’ll get funded. Getting the right investor is tough but getting the right investor, within your limited timeframe is a much more difficult challenge.
So, the question remains: how do we raise capital? Is there a process that can help us navigate this multitude of options?
Let me introduce you to Hack Funding, a method to help you drastically improve your decisions about fundraising and on top of that spare you a ton of time. Hack Funding consists of several steps across three stages; all of which will be discussed thoroughly through this column in the upcoming weeks. On its completion, you will be equipped with the knowledge to create a hyper-curated list of VC contacts more relevant for your business.
Contents of Hack Funding:
1.Pre-game; the prerequisites for using Hack Funding.
1.a. Find the right tools for you; database(s), spreadsheet software, CRM software (it is a sales process after all).
1.b. Define the exact vertical(s) your startup caters to now and in the future; which is it more related to, which is not?
1.c. Determine the exact business model you are following; B2B, B2C, marketplace, etc.
1.d. Improve your competitive landscape analysis; find your direct-indirect, current and potential competitors.
2. In-game; the process itself.
2.a Combine your pre-game findings to create an extensive, yet well-curated, list of startups operating in the same or neighboring vertical(s) as you do.
2.b Use the proper tools to find, which of the startups in your list have got funded, when did they and most importantly by whom did they get funded?
2.c Manage, your findings from 2.b, to draw VC investing patterns and common synergies; which of the funds tend to invest together, which lead?
2.d Analyze the data from 2.c with relevance to your startup and goals.
2.e Create a custom score to classify further the final data and create your list.
3. Post-game; tricks to make the most out of your sourced leads.
3.a Use a CRM tool to list and track your leads’ performance.
3.b Use public data and databases to extract contact info.
3.c Find who among the VC partners is most likely to schedule a meeting with you.
In conclusion, Hack Funding does not derive from decades of research and tens of rounds raised, but more from the freshness of a new pair of eyes to the process. In this context, comments and suggestions are welcome.
There is a perfect match. I hope this series of posts can help you get there. Stay tuned cause we’re starting next week!
Till next time,