Brett Brewer, the Chairman of Ad Knowledge (http://www.adknowledge.com/) offers tips on raising money. These three ideas will help you successfully fund your first business and get it off the ground.
- Maintain persistence & passion about realizing your idea
- Set & achieve milestones to create a track record with investors
- Objectively assess your valuation
- Be cautious of becoming overly protective of equity
My 3 tips for successfully raising money for a new business. First and foremost it's about being persistent and passionate about your idea. This could go in the bucket of that should go without saying but it is extremely key. Most venture funds, private equity funds. Any really angel funds, any one that's investing into business are typically hearing 5, 6, 7 business plans a day.
And, there are lots of great ideas out there. The money tends to go with the entrepreneur that is incredibly passionate and that the investor community believes will be able to navigate through the tough times with any business and be successful. And, that starts at the first gate which is raising the actual money. So, it's all about being persistent and passionate about your actual idea.
The next tip is around building relationships with the specific investors and really building a track record with them. So, the idea would be start even before you're thinking about raising money and get in front of these individuals. Tell them what you're doing. Check back in 3 months later or 6 months later once you delivered on that process and over time you'll start to build a track record with these people with them not even having to invest a new but see that you're someone that can deliver on your promise and deliver on the tangible goals that you've laid out. And, that's a huge differentiator between those other 5 or 6 or 7 people that are going to be pitching those institutions that day or that week.
And, then the final tip is really about being realistic about your evaluation. We all want a raise in general the most money we can
and give away the least amount of the business as possible but I think sometimes people miss the force through the trees as the saying goes and -- or they can't see the force through the trees. It's really about getting the company off the ground. Getting great financial investor partners to help you build and build a very big business and a big pie if you will. It's not necessarily about trying to angle out and keeping the most amount of pie as possible early on. So, I think that's one snag that typical entrepreneurs get caught up in, in that -- they are too concerned early on about each little percentage here there where I think kind of stepping back and take in a bigger approach is more likely to be successful.
So, those are 3 insider tips to successfully raising money that I know will be helpful for you.