As an active angel investor myself, here is my priority list of eight recommended preparation activities when you're looking for funding.
Forget creating the perfect pitch for investors. Instead, focus on creating a deck you can iterate based on actual investor feedback.
With potential investors, honesty is the best policy.
Ready To Launch
These three critical elements must be in place before you face an investor.
Would switching to a subscription model work for you? If yes, jump at the chance and do it right.
The growth rate is especially impressive considering the country went through the Great Recession.
The company's Chinese business boosted its valuation last month to more than $8 billion after raising more than $1 billion in its latest funding round.
The opportunity to invest the equivalent of a down payment on a modest Silicon Valley house in the early Uber would be worth a billion dollars now. When you pay that kind of tuition, you need to learn the lesson.
You want to hear "yes,'' and you will survive hearing "no,'' but you can't work with a "maybe'' that never ends.
Ready To Launch
Having all the answers when you pitch investors will lead them to ask only one question: ""How soon can I sign up?"
When a business is launched, every member of the team is crucial to success. Picking those people is the founders primary job.
Getting venture capital funding is a constant game of selling, and it's far easier to sell yourself if independent third-party experts rave about you.
Investors and founders both sense the venture funding pool is drying up. If you're raising money, take every dollar you can when you can.
Nakul Mandan, investor at Lightspeed Venture Partners, talks about the dynamics of investing in companies that are building new market categories.
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© 2016 Entrepreneur Media, Inc.