What are the different kind of tactics used by startup/entrepreneur to raise funding?
According to me when a startup/entrepreneur going for fund raising it’s better to go with a good Business Plan and then Select the target group like, who can become the potential investors for your firm like Angel Investors, Venture Capitalists, Strategic partners, Bankers, Co-founders, Linked In, Incubation centers, Relatives and Friends and have a tailor-made approach to them for fund raising. Do not shoot aimlessly, it’s better to make an investment plan on knowing who are the potential members who would invest in your kind of business. Then, create a pitch according to their perspectives.
Second, you can hire a recognizable CEO or Mentor if you have never raised the funds as this will give more credibility and easy access to the target group and it also helps the firm to get more connections.
Third, if you are not getting the whole capital (fund) from one investor then it’s better to divide the capital into smaller lots and ask multiple donors or investors to provide you the capital. Then your work becomes easier to get the fund from multiple investors.
For an example, if a firm needs One crore rupees to start a business or a startup and the firm is not liable to get the whole capital from one single investors, then the firm can approach to another investor after dividing the amount into smaller lots for getting the funds and it also increases the probability of getting the funds from multiple investors.