“How to become investable”: learnings for Early Stage investment
#startups #business #accelerator #strategy #tech
For startups founders, the struggle of raising investment when the business is still at an early stage is too real. To help teams, we invited our mentor Class H. Nieraad, from New Commercial Room, together with High-Tech Gründerfonds (HTGF) Germany’s most active seed stage investor, for a Q&A session on how startups can take advantage of the opportunities and be “investable” in the eyes of VCs.💰
Here are the question highlights and main learnings:
Q: How to approach investors when you still don’t have a complete team?
A: Truth be told, is always better not to come completely alone when approaching investors.
And then comes the follow-up question: How can I find other team members?
It can be the case, as with HGTF, that VC funds can provide help in that regards, as they have a database and can connect with people who can potentially be an addition to the team. Another way is to go for your own network: startups in accelerators are already in a good start: talk to other teams, take part in hackathons, go to conferences, conventions, go back to your university hub…take advantage of the opportunities to meet new people — your co-founders can be anywhere out there. 😜
Q: At which stage is it better to approach investors?
A: Seed investors can invest in startups working at different stages. Sometimes it can be easier to build the technology and approach VCs before going to the market. Note: If you approach investors when your product is already in the market, make sure to bring some convincing KIPs — the VC will want to take a closer look at that.
Tip #1: If your startup is in a really early stage, the best idea might be to approach scouters, bring concrete questions and learn what is needed before approaching investment funds directly.
Tip #2: It’s always a good idea to approach investors early and keep them on the loop (send the pitch deck and if the investment fund think it’s too early, they will get back later on. But it always shows some proactivity when founders update the VCs themselves).
Q: Any tricks to get the attention from scouts and VCs:
A: When sending an email, keep it short (and relevant). For investors, all the necessary information should be sent in the pitch deck.
(Wondering how to make a killer pitch deck? Know your audience.)
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