Raising Venture Capital
Raising Venture Capital
Raising venture capital for a small business or startup is not an easy task. Luckily, at one of our most recent editions of Founders Night, Justin Mitchell from Yac shared his tips and tricks on how to raise capital for our local entrepreneurs. Having brought in $1.6 million of out of state investment to Kissimmee, Justin and his team know a thing or two about raising VC. Check out his advice:
Update your website and social channels
Much like your customers, an investor is going to first take a look at your website. It is crucial that your website and social media is up to par and represents your business in a truthful and professional manner. We know that to the untrained eye, websites can be a bit intimidating. But don’t worry, you won’t need to be able to read code to take these simple steps for upping your website game.
- Drop links back to your social media, portfolio, pitch deck…anything you have to showcase your business (and all of your hard work).
- Include real photos of your product, not just stock footage.
- Add social proof above the fold. In other words, include articles your product was featured in or photos of people using your product at the very top of your website before an investor can scroll past it.
- Check out our recording of our Virtual Founders Night on Website Critiques or read our blog to learn more!
Establish a power dynamic early on
Although that first meeting with an investor can feel like the weight of the world is on your shoulders, it is important to establish credibility with him/her and showcase confidence (no matter how anxious you may actually be). Asking about them and what their needs are in the end actually caters to your needs. If this investor couldn’t care less about your numbers and wants to see your product itself, knowing this in turn gears your conversation toward what you should be focusing on and raise that venture capital. Isn’t that what you came for in the first place?
Whether your goal is to raise capital, increase your social media following, or simply just to tell someone about your startup, transparency is key. When it comes to raising venture capital, leading with your story and not just your pitch deck is key. Not only will this make your experience with an investor more personable and honest, but your investor is more likely to want to invest in you and not just your product. At the end of the day, we are all humans and we all have our own stories to tell, so why not share them?
Be unashamed of what you need and just ask
What comes with being transparent is telling an investor what it is you want from them, which can be daunting as a startup or small business. However, this is crucial when it comes to raising venture capital and taking your brand in the direction you want to go. Update your social media bios with what it is you are looking for and follow suggested investors. Don’t be afraid to use direct messaging to reach out to an investor and tell them what it is you are seeking from them. Investing is a two-way street.
Overall, the most important thing to remember is that investors aren’t investing as much in your product as they are investing in you. Being honest, open, and clear about your goals and needs is crucial in raising venture capital for your business.
Want your pitch deck to be reviewed before you send it out to investors? Email yours to firstname.lastname@example.org and get the feedback you need to be successful!
Be sure to tune in to our monthly Founders Nights and become a member on MeetUp for more tips like these on topics only relevant to entrepreneurs.
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