The Art of Startup Fundraising

3Setting Yourself Up for Success

Business success requires business preparation. You don't have to be a master tactician, but you do need to have a plan in place. This plan will act as a foundation for everything you want to achieve.

Diligence is a key word in the business world for a reason. When a potential investor sees that your startup is well-thought-out and managed with a high level of expertise, with defined and realistic goals, that investor will know that your business is a solid proposition, and, therefore, the business will attract more investment. This approach is about cultivating a working process that leads to success: success for you, your startup, your investors, and your employees.

Investors Don't Want to Invest

As a startup founder, you need to understand how truly difficult it is to attract investment. Many rookie founders make the mistake of assuming that their product/service concept is so attractive that all they need to do is put the word out and watch the capital roll in. Nothing could be further from the truth.

Even with a fantastic idea, investors will still be wary. Why? Because they know that any investment could potentially fail, costing them the assets or capital they've supplied. You need to therefore begin your search for investors with one mantra: Investors don't want to invest. When you understand this and put it at the heart of any pitch, all of your efforts will be focused on persuading investors away from this negative outlook, and encouraging ...