How to land a whale of an investor?
So you want to know how to raise capital. I’ll tell you. It’s very simple. Don’t try to raise it. First build yourself a product to demo, then get a few customers to show proof of concept. Then money will either come to you or most likely it’s not as big an idea as you thought.
Remember folks, investors are greedy Alpha Dogs. They SEEK Alpha. If you’re idea isn’t good enough to be sought then don’t. Of course there are exceptions and you still need to pitch and try. But the basic lesson here is this: people something good and you can find money.
Now say you have a great product…how do you position it for capital. Positioning is just as important as the idea.
1) Have a coherent pitch. Elevator pitch, 60 seconds or less.
2) Have someone who has raised capital before help you with an executive summary AND a power point deck. Hire someone if you have to. The business plan is secondary as are the financials. Rarely will your plan ever be read in full and no matter what’s in your finanancials no (smart) investor will believe them. Investors want a business plan to see that you can make one though.
3) Have testimonials
4) Have good people around you
5) NETWORK YOUR ASS OFF, be friends offer favors to other people and eventually you’ll find what you need or the right partner that can take you there. Ask your lawyer, accountant, finance geek and fellow entrepreneurs. If you have a good idea, you will get referrals. If its a bad idea you’ll be told “i don’t know anyone”.If you can’t get referrals the odds are its a bad idea
There’s an exception: some ideas are not fundable…but that’s a story for another day…
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