Funding rounds for startups: tips

Startups are usually born from the originality of business ideas of entrepreneurs, but one idea is not enough. It is important to have financing. The initial money for the business usually comes from various sources, such as the entrepreneur’s savings, loans from family members and the help of friends and acquaintances.

However, there comes a time when startups need a boost to grow, and that is when they face the challenge of seeking external investors. For the search to be effective, planning is important, which is why we propose several ideas.

How to prepare for financing rounds

Take note of the tips you can follow to obtain financing for startups:

Take prior precautions

When you create a company together with other people, you must regulate in a partners’ agreement, the relationship between the partners, what each one is going to do, what they contribute and what happens if they want to leave the company.

In addition to the above, to be prepared for the entry of new investors, regulate in the shareholders’ agreement what rights and obligations the investors will have and under what conditions they will enter the company. You must not lose control of your company in favour of new investors.

Prepare your speech

You may meet your investors at a networking event or another type of entrepreneur meeting, and you must prepare a short, attention-grabbing speech about your business to provoke a meeting with investors. Investors and present your project in depth.

Study investors; not all of them are suitable for your startup

Not all investors are valid for all startups, so you will have to do a prior analysis to know how much they usually invest and in what type of companies. Don’t forget thatyou may need several investors and not just one.

Present your idea, but above all, show the people on your team

Remember that your project is not only made up of profit, forecast or sales figures, but the team of people who collaborate and contribute their skills is essential. When you talk about your project, don’t forget to introduce all those who help you and collaborate so your business grows.

Go to networking events

Finding financing for a project is not possible if you sit in your office and wait; you will have to go out and go to networking events in your city where investors attend, to workshops for entrepreneurs, or to join an accelerator since they usually organize financing rounds.

The moment of truth: the presentation of your business

You have prepared everything, your team is ready and alert, and the moment arrives when you meet with an investor and present your project. Speak clearly and, in addition to introducing your team, as we have said before, make clear the forecasts and the profitability of the investment for the future.

Getting the attention of investors is not easy. It requires a lot of preparation and patience. Are you ready?