Podcast: The Art of Fundraising
In the latest episode of Trailblazing Entrepreneurs, serial entrepreneur and investor Max-Michael Mayer, CEO, ISV App, shares how startups can find investors, raise funds, and achieve growth. Based on experience gained from his own SaaS ventures, Max-Michael reveals what makes an attractive investment opportunity and shares his key tips for executing a successful exit strategy.
Read on for some of the takeaways from the conversation with Max-Michael then check out the full episode here, and the full transcript here.
Start the Fundraising Process as Early as Possible
To ensure resilience in the face of unforeseen events, the importance of having financial reserves should not be underestimated. Max advises startups to have various back-up plans in case things don’t unfold as expected and to factor enough time into the business plan to raise the funds needed to avoid being put under pressure. He suggests, “You might be lucky and close something in three months, but on average you should always plan for six months. You have to go on the road and talk to people. The customers don’t come to you, you have to go to the customers — and you have to call as many as possible in order to close deals.”
Do Your Research
It is important to remember that there are different types of investors, and the right one for you depends on your experience and style of working. To filter down the options, Max recommends getting references for investors by reaching out to other companies they have invested in and asking the founders what their experience with them was like. Doing this research in the early stages will help increase the likelihood of attaining funding later down the line.
Demonstrate Expertise and Passion
The amount of experience founders have under their belt is not something Max prioritises when considering investment opportunities. What he looks for is the specific knowledge and expertise founders have in their field — that’s where the real skill and potential lies. Passion is important too. He says, “I have to see the fire. People have to stand behind their idea, and be really eager to build a business up. The vision has to be in place right at the beginning. That’s the most important thing — show your passion, believe in your business and have a vision.”
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