Raising Capital & Getting VC’s Attention is perhaps the most difficult challenge any entrepreneur faces, and for many, it’s unavoidable.
In today’s business climate, there are hundreds of ways to fundraise.
Here are six rules to keep you on the right road to Raising capital & Getting VC’s Attention.
Establish clear, realistic goals. From day one, clearly state your objective. If you can’t explain your vision in concrete terms to potential investors, you can’t expect them to give you their money.
Be realistic about what you are trying to accomplish. By laying out your plan in detail, you should say what you can expect to achieve confidently. Investors deserve transparency and truth. Your partnership must be based on trust — and only credibility can breed it.
Making a good impression with a solid pitch presentation is essential, but it won’t guarantee funding. Credibility invokes confidence, which mitigates risk and opens wallets.
At OTCPRGroup we encourage that you follow these basic rules to get started:
Have a solid team in place. Any startup is only as good as its people. A strong, efficient, and success-driven team is necessary. Recruiting people with sound reputations for honesty and integrity helps attract investments. After all, you are your team.
Focus on the “real” market. Exhaustive, in-depth market research is the only way to map a blueprint for success. Many early-stage businesses are too eager to get started and end up setting out in the wrong market. The best market for a new business is not always the biggest or the steadiest. You have to do your homework. There is no replacement for in-depth market research.
You and your startup team should profile a variety of markets. That is the only way to determine which one is the best fit for your business. Market research can be tedious, but it is the bedrock of a solid business plan.
Get your name out there. The biggest irony in raising capital? It would help if you had some means to do it. Investors won’t know every detail about your project, so you have to decide what essential information to deliver. Fortunately, the Internet is the best advertising medium invented, and it’s always open for new business.
The web is, without a doubt, the most powerful place to advertise. Even better, it’s cheaper than broadcast TV, radio, or print media. Social media can also be a real boon, as reliable networking can help you connect directly with potential investors. That’s how you create the support network for your project.
Consider crowdfunding for validation. Crowdfunding is one of the best fundraising tools available for startups today. The concept is simple: You advertise your business idea on several different dedicated platforms, and users vote with their wallets. A crowdfunding pitch can also be a good litmus test. If you don’t attract investors (or interested customers), you should consider tweaking your angle or business model.
Choosing the right platform is paramount. Again, do your homework, this time in the form of due diligence of the companies managing your crowdfunding initiative. It would be best if you verified the platform’s solidity and validity, including the track records of those running the forum.
Keep them close. In the end, your success will depend upon the credibility you’ve built and the connections you’ve established. A successful venture is the result of a series of positive interactions between the business and its investors. Keeping investors in the fold will make them comfortable and confident about how things are being run. Remember, they will keep the engine running, but only as long as they are sure you are moving in the right direction.
Raising capital & Getting VC’s Attention
The road to raising capital can be a bumpy ride. But with the right approach, the right people, and the right funding avenue, it’s one worth taking.
OTC PR Group provides a full suite of small-cap public relations services utilizing the latest technologies coupled with relationship building processes to develop and maintain interest from your shareholder base.
We work to build shareholder value by engaging with key-stakeholders and effectively following up and communicating your message, investment potential, and corporate vision to investors, Brokers, and the media.
Unlike other firms with a similar focus, We connect our clients with groups that invest in many of its clients, putting its own earned capital into positions to safeguard management’s interests while fulfilling their goals and objectives.
Introducing our clients to experienced teams leads clients throughout the mandate, constructing and communicating the business’s investment potential while negotiating to secure funding under the best possible terms and conditions.
Call us to learn more: 561-807-6350