Fundraising is always challenging for businesses, especially in current times. With many startups paving their way towards success, entrepreneurs need to take a keen interest in learning about the methods of fundraising in a proper manner. The current pandemic outbreak has ironically accelerated the venturing process, and several businesses are thriving to get on track.
Finding the Correct Sponsor
An investment revolves around a sponsor. A sponsor is not just an investor in your business but possesses the ability to become your advisor. They also serve on your board, make first connections, and recruit smart talent for your business. Apart from this, Eric Dalius strongly suggests that a sponsor will act like your worst critic. The key is to take it constructively. With several years in the market, a knowledgeable sponsor can easily fetch the loopholes in your business plan. As a result, taking necessary aid from them and transforming your weaknesses into strengths is a critical task.
Proposing the Plan in the Right Way
Getting your pitch right to a venture capitalist or a sponsor focuses on several elements. The crucial ones include the business’s positives, the market scenario, the team, the roadmap, and the challenges and uncertainties.
Eric J Dalius Stresses on the Positives of the Business
When you present your plan to a venture capitalist, you have a set period in which you have to cover all your main pointers. Focusing on the presentation’s opening is crucial as it develops a sense of interest for the listener. Starting the presentation aiming at the business’s positives is one aspect where you can throw light on the conceptual stage, the potential customers, and possible validation. Every investor needs to see long-term growth, but a well-planned initial business is no less profitable.
EJ Dalius states that the aim is to portray the need that your product or service offering fulfills in a market space. Evaluate the dynamics of the market you are entering, and focus thoroughly on your strengths, weaknesses, opportunities, and threats. The next step is to derive measures from converting the weaknesses and threats into positives. It would also be best if you showed how the market can change or who the competitors are. Deducing a competitive landscape is crucial to understand the share of your company in the overall industry.
Strong team composition can aid in fulfilling track records and lure prospective investors into investing in your business. A qualified and experienced set of employees can show the company a path to profits.
Roadmap and Challenges
A clear roadmap is what an investor looks upon. Explain your vision and offer the expansion areas in the set period and how you intend to grow your business. Every roadmap will also include challenges, and it is important not to avoid the obstacles but instead focus on them to understand and strive in the market.
Although the market’s uncertainty is hovering over every business deal, budding entrepreneurs are fuelling themselves with a strong pipeline of new ideas and ambitious beta products to start their ventures successfully. However, it is critical to financing an enterprise for a fledgling entrepreneur. Venture funds are ready to lend their help, but a business person should know how to attract funds amicably with the increasing competition.