Nine numbers you need to crack the funding code
by marufjony · 42 things on Twos
- An understanding of what is going on in investors heads?
- What keeps them up at night?
- Taking the right funding from the right sources.
- A specific industry (tech) or even a specific geographical area
- Many VC’s will not look at your business until it has a proven track record
- You need to match your funding request with the proper channel of funding
- A great founder and a great team that are passionate about the business
- Bet the jockey, not the horse.
- Investors will evaluate
- The founder
- The team and THEN
- The business
- Investors are looking for founders that will be able to convince others to join the journey
- Needs passion and energy
- A solid business plan/executive summary
- With realistic expectations of profitability
- 2 pages
- Describes everything about the customer
- Business execution
- How much money is required
- A compelling pitch
- Selling yourself and the opportunity
- Your story must be so memorable it will stand out from the other thousands of pitches they receive
- Our business must be
- Consistent
- Concise
- Compelling
- Must include a pitch deck that distills the most complicated and complex concepts of the product so they are not only interested, but intrigued to hear more.
- The ability to answer any questions about potential risks
- Product risk
- Market risk
- Management risk
- Execution risk
- Competitive risk
- Financial risk
- Must be able to mitigate those risks
- A clean deal that works for both you and your investors
- A specific request for what the business needs and what we are giving in return
- Strategies for the deals legal process and the due diligence of the deal
- Be clear with deal breakers
- Be willing to walk away from the deal
- A clear exit strategy that will end in a significant ROI for the investor