Must-Haves for Successful Fundraising
Last week, The Portal had its quarterly Face to Face with Investors event. This time, presenters focused on sharing the things that startups and entrepreneurs need to successfully raise an investment round.
Speakers from multiple industries and backgrounds came to share their knowledge, and we have a few highlights!
Key Marketing KPI for Fundraising
Pick 2 – 3 metrics for success.
These metrics should usually be things that are indicative of your company’s revenue, growth, and retention. For startups with apps, these could be things like the number of monthly users, downloads, etc.
As you choose these KPI, you should mix quantity and quality. Don’t just collect the numbers for their own sake, but check on your revenue, the margin, and the cost for a sale. This way, you’ll be able to determine the sustainability of your techniques.
Utilize modeling and forecasting.
This will help you identify the levers that power your metrics, or the things that your team needs to do to maintain the numbers you need to keep up with your growth curve.
Create a bottom-to-top model.
When you start with the holistic KPI for your startup and then work your way down with modeling to identify what needs to be done, you’ve essentially created a top-to-bottom model. From there, you need to be able to create a bottom-to-top model that can motivate your employees as well.
Turn your KPI into actionable items that your employees can act on. This can help you encourage them to meet specific KPI by showing them how their actions can impact the numbers.
The Secrets of Getting Funding from Investment Groups
This panel of experienced investors including Phil Gill, Patrick Flynn, Jay Cormier, and Howard Mirowitz, moderated by David Friedman, sat down and shed some light on some of the things they thought were important for a successful investment pitch.
Show how scalable your startup is.
When companies are pitching to these investors, they want to see big, scalable ideas. Investors want to see that you have an idea that someone can’t duplicate easily, or something that only your team is uniquely capable of achieving.
Investors are also looking for realistic business plans, how your startup will achieve your goals, and ultimately what their returns will be.
A strong team is key.
There are lots of different factors that can go into the way investors evaluate your team, so building a strong team is a good way to make your startup stand out from all the other startups that investors are pitched about day in and day out.
Your CEO will be the person making your startup’s business case, so make sure they know the goal of the company. In a similar vein, your CEO will also be the person leading your team, so the way that they motivate and lead is a key factor for consideration. Not every founder or CEO has to have done it before, but even if they have and failed, at least they’ve learned what not to do.
Your pitch should highlight your team’s adaptability. Show your team as the only group of people uniquely capable of building your solution and running your startup.
Tell your story.
You can have a presentation that touches on all the must-haves and key statistics, but there is no way to find a template that can tell your business’ unique story.
Start with the problem you’re solving, what your solution is, and why you and your team are the only ones that can solve the problem you’ve identified. Your story will be the way that you capture investors’ attention, so make sure that you put your team’s best foot forward in your presentation.
Did you miss these, or any of the other panels and presentations at Face to Face? Don’t sweat it!