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How to Grab an Investors Attention!

7/24/2019

A common theme among entrepreneurs and startups is how to separate yourself in a competitive market and grab the attention of investors. Tonight thanks to sponsors TriNet, Vaco,WeWork, and TechCXO, a great event was afforded for the local startup community and fellow entrepreneurs to participate in a panel discussion and hear from leading local investors like Tim McLoughlin at Cofounders Capital and Jackie Bennett at SJF Ventures. Some of the key wisdom points shared was how to separate yourself from the hundreds of emails and pitch decks they see. In addition, we got to hear from local entrepreneur Ursula Mead, founder of InHerSight, and how she navigated her path to investment. Plus Nick Jordan, Founder and CEO at Smashing Boxes, sharing his advice to entrepreneurs. Whether its your first raise, second or third, enclosed are some tips on how to attract attention from a potential investor and increase your chances for success.

Networking is key! Go to events and meet the angels and fund managers attention. Put a face to a name and meet in person.
Best advice for fund raising is first make some sales! Hustle and prove your worth! Start with customers. Sell something to somebody to show your building a real business with real need!
Try to bootstrap as long as you can so you can have more control and have more leverage.
As a first time entrepreneur raising money is hard. It can be a full time job. So be prepared for hard work and long haul. Once you have some proven exits and leading as CEO raising money gets a little easier.
Sales counts for a lot. The bias is towards sales orientated CEOs and demonstrating you know how to sell. Go To Market people are important and showing you have a solid strategy plan with solid go to market details is important to peaking interest from investors.
Showing CEO experience and having a solid team that knows how to build business with unique idea in a big market is a winning combo! Show these value points when talking to investors.
Software BtB is where most investments are going towards right now and the hot spot. Know the investors thesis per what they like to invest in so you find the right fit.
Remember it's a numbers game. It's a sales process. You need to manage the sales funnel and a lot of work!
When you ask for money sometimes it does not match the investor thesis so don't take it personal. Sometimes it takes a dozen meetings and then follow-ups with same investors. It can take months and months! You will hear no so be prepared for it and move on!
Persistence and perseverance is the key! Even when you have your wins, keep the mindset of slow and steady wins the race. Keep at it!
Use things that go wrong to motivate you and help push you to make it right or better. Use your lows to push you forward to keep going bigger, better, and stronger.
Look to team up with investors that have expertise in your space so they can help you through your challenges. Good investors have seen it before and can help you ride out the highs and get through the lows properly.
Take time to celebrate the moments that go well. Cheers to your wins so you can keep motivation high!
Bad news does not get better with age so talk through things in real-time and avoid all surprises.
Remember their will be highs and lows. Be ready to shake off the lows and be smart in riding out the highs. Keep the work life balance going so you can keep healthy balance to get through all smoothly.
If a product is good and solves a real problem and demonstrates demand for the solution then money will more easily flow towards investing in that business. First things first is have that good product or service that demonstrates this real value!

Key quote: "If you want money, ask for advice. If you want advice, cask for money."
Remember, it's all about selling something to somebody. Showing attraction and interest is key!
You are always fundraising! Always be ready to make the pitch
Having at least an MVP (Minimum Viable Product)shipping helps you attract investors because it helps you show what you are offering is real and that there are customers and demand! It helps you get more leverage and higher valuation too! So get something out there, test it out, get feedback from customers, and show your produce is valued. The best recommendation to investors is a recommendation from an existing customer that says your product is great!

A special thanks to Bridget Harrington, Executive Director with Innovate Raleigh, for moderating the panel discussion and the sponsors TriNet, Vaco, WeWork, and TechCXO!

Key quote: "If you want money, ask for advice. If you want advice, cask for money."
Remember, it's all about selling something to somebody. Showing attraction and interest is key!
You are always fundraising! Always be ready to make the pitch

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The Legal Lowdown on Startup Financing

7/17/2019

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Today was the Durham Lunch & Learn presented by RIoT at Smashing Boxes. The big topic was "The Legal Lowdown on Startup Financing". A great opportunity to join Jesse Jones, Founder and Lead Attorney of Fourscore Business Law, as he discussed the sources of financing available for startups and recommendations on which of those financing options to use. Jesse also gave the inside scoop on what is needed to be prepared before talking to an investor. Here are some key wisdom points of advice shared to support your career and startup endeavors:

For your finance considerations, always start with what your end game is. Do you want to build and exit in 5 years? Building a sustainable long term company?
Question strongly, do you really need outside capital to get to your end game?
Most important reasons on why you may need financing: Funding growth, but doing the growth with more speed to support sensitive "Time to market" considerations. Need the connections from the investors plus further validation of your company. Last reason and not the ideal is "Survival" to protect the company and keep it going through upstart challenging times.
Top finance sources to explore: "Friends and Family"- People close to you want to help and believe in you and like a return. "The Crowd" like IndieGogo who want to buy into opportunity and get return on investment. "Angel Investors" like RTP Capital looking to make a social impact, get associated with a rising star, and have good return. "VC" to help with bigger strategic needs and looking for big return. "Government and Banks" more institution investors.
Main finance types. "Grants" that don't take stock and is free money. "Equity" like preferred stock and common stock. "Debt" loans/line of credits and convertible debt that need to be paid back. (Interest or equity). "Convertibles" (SAFEs)- Not debt does not get repaid with interest, but investor gets equity for the money given in company. Safe=Simple agreement for future equity
The most important things investors look for: Strong team with coach-able executives. A great idea, product/service, and a business they understand with good model that they can add value towards.
The ideal founder & CEO mindset when looking for the right investor should be around their industry expertise, connections to other capital & relationships, and their own passion & interest in what you are doing.
What can you do to increase your chances of raising money? Show them the money! Show them the success to date and opportunity ahead. Have your books and records in order. Be realistic with your valuation and what you are worth. Have a term sheet thought through on how you are looking to raise capital and what you are willing to give up.
What is the best way to have success with investor pitch? Know your basics(team, problem, market, your finances etc), know the investors and their interests to relate to them with your pitch ie. Do they focus on BtB, Life Sciences, Consumer, Have confidence with a well practiced pithc. "Know your ask" like you need $1M to go from here to there and here is exactly how you will get there and the results aiming for ahead that shows big opportunity!
How do you increase your chances of getting a "yes" from investors? Figure out how to de-risk your company to make it a brighter opportunity perspective for investors, apply to an accelerator, and focus on building a "real" business that has good revenue, growth, and profitability or clear pathway to good profit with compelling sustainable business model.

A special thanks to RIoT (Caroline) for putting on a great event and Jesse from Fourscore Business Law for presenting plus Smashing Boxes for hosting!

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How to Grab an Investors Attention!

The Legal Lowdown on Startup Financing

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Thank you sponsor:
Purebuds Earphones

How to Grab an Investors Attention!

The Legal Lowdown on Startup Financing

Author

Archives

Categories

Thank you sponsor:Purebuds Earphones

Thank you sponsor:
Purebuds Earphones