Whether raising a Series A or Series D round of funding, the process of reaching out to investors and fundraising is an intimidating task for every startup founder. To simplify the process, we sat down with Google’s former President of Asia Pacific and Latin America operations, Sukhinder Singh Cassidy, to discuss the tactics leading to the $19 million she’s raised for her latest venture Joyus.
- The best way to reach out to investors is through your network. Try asking fellow alums or entrepreneurs in the investor’s portfolio to make an introduction.
- If you don’t have a strong network start by cultivating authentic relationships – Work on a new product or participate in startup conferences with fellow entrepreneurs.
- Ask yourself three questions before getting in touch with venture capitalists: Have I bootstrapped and released a product? Am I deeply immersed in startup culture? Is there data indicating my product’s success?
- Develop a business model highlighting your milestones and the goals you need to achieve to reach them.
- Don’t pitch over coffee. Instead, share your vision, demonstrate your industry expertise and above all, ask as many questions as possible.
- Be strategic in your outreach and don’t pitch people before you meet them. When using email or LinkedIn, introduce your idea and request to have a dialogue in a formal setting.
- Raise more money than you think you need. The biggest risk you face working with investors is running out of funds in between important milestones.
- Whether you’re raising $100,000 or $100 million investors expect funds to last 18 – 24 months; Structure your spending and investing habits accordingly.
- Remember that each decision you make with this series of funding impacts the next. Use each round to demonstrate promising management tactics to investors.
Photo retrieved from CB Insights.