Starting a new business is tough work. There are a million things to do, and different hurdles pop up every day. But once your startup is up and running, it might be time for the next step. Approaching investors for the first time can be daunting, and many new business owners put it off out of fear of being ill prepared.
Finding investment capital for your business is highly competitive, and it pays to have your ducks in a row before approaching venture capitalists. Making the necessary preparations ahead of investor appointments will help startups gain access to the Australian investment network.
1. Leverage Your Existing Network
When the search for seed funding begins, the first place to start should be your existing network of peers. People who are already familiar with you and your work are usually more likely to lend a helping hand. Examine your list of contacts and think on who might have access to prospective investors.
The Internet also makes it easier to find investors. Investors looking for the next big thing comprise Australia’s growing venture capital market. Perusing digital marketplaces could lead you to the capital you need to drive your startup to the next level. These websites are a great place to extend the reach of your network.
2. Be Professional
Venture capitalists are busy, and if you score a meeting with an investor interested in your startup, then preparation should be on the forefront of your mind. Professionalism is key in convincing someone to fund your enterprise.
If investors are impressed by your professionalism, then it will be easy for them to imagine how others will also want to do business with you. Dressing well, eye contact, amicability, and authenticity are all powerful tools in funding meetings. Try to connect with investors on common ground, and pay attention to their feedback and concerns.
3. Come Prepared
Before you step foot in that meeting room, make sure that every aspect of your startup’s financials are in order. When you pitch to investors for funding, the argument for why your company needs outside capital to become more profitable should be clear and strong.
Your startup’s value as a business should be reflected in financial documents. By supporting your claims with hard numbers, investors will see that you’re serious and the business plan works. Make sure to have all the information that investors need to easily access your business to see if it’s the right fit for investment.
4. Develop Personal Relationships
It’s important to consider the people behind the startup capital you’re looking to acquire. Getting to know the investor you want to do business with will pay off in the long run. Matching their financial goals with your own takes getting to know them and their preferences.
Sometimes informal gatherings work best, and meeting up for dinner and drinks can get your further than the traditional office setting. Everyone is different and paying close attention to investor’s likes and dislikes can help to establish a rapport.
5. Look into Multiple Sources of Capital
As the saying goes, don’t keep all of your eggs in one basket. Funding sources often dry up, and smart startup founders will seek capital from a variety of places. A healthy diversity can ameliorate risk and give your startup a more robust path towards sustained profitability.
Australia’s investment network features venture capitalists whose preferences on risk and industry run the gamut. Finding the right network to support your startup takes time and effort. Careful research will pay off, and learning the playing field’s ins and outs will help your startup achieve a diverse mix of seed capital.
Do some legwork and read up on the investors in your area - your next big break could be closer than you think.