I invite you to read my published article in the California Business Journal from January 5, 2023. I talk about what I consider to be the “Top Three Tips to Land an Investor Deal in this Market.”
Once entrepreneurs get their business off the ground, the next step is securing funding. For many new to the world of fundraising, it can be intimidating to schedule countless pitch meetings until you finally find the right people to support your company. But attracting investors to your new business isn’t as hard as you may think.
Here are my “Top Three Tips to Land an Investor Deal in this Market.”
1. Going Small, Not Big
One way many young entrepreneurs completely waste their time is by pitching to angel investors and venture capitalists because they tend to invest large amounts of money in a small portion of the projects pitched to them. Instead, new entrepreneurs should take advantage of lower-dollar investors and having a larger investor base. Rather than trying to gain $2 million from one investor, aim to get $20,000 from 100 accredited investors.
2. Maintaining Investor Relationships
The (SEC) dictates how you communicate with investors and what type of investors you can get. I recommend phone calls and old-fashioned mail — not email. Send product samples, your printed slide deck, articles, or press releases, but send something consistently. With prospective investors, remember that it can take ten phone calls to close a deal. Don’t give up on your third call.
3. Overcoming Entrepreneurship Challenges
There are some difficulties that entrepreneurs should be aware of. For example, the market itself is very hostile to new businesses, especially public companies. During the pandemic, many short sellers undermining the attempts of new businesses entered the market and have yet to fully leave. They took advantage of the time when people were struggling financially — with current inflation rates, things are much the same — and this presents one of the biggest challenges for a growing business.
To read the entire article, click Here