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An Investor Reveals How To Land Your Startup's First Round Of Funding - Business Insider

An Investor Reveals How To Land Your Startup's First Round Of Funding - Business Insider | Startups | Scoop.it
Business Insider
An Investor Reveals How To Land Your Startup's First Round Of Funding
Business Insider
Steve Schlafman has been a member of the New York City tech community for years, as both an entrepreneur and an investor.

Via The Business Plan Team
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Excellent !!

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The Business Plan Team's curator insight, February 5, 2014 3:38 AM

Great background on Venture Capital (and seed funding in general) if you are looking to fund your business plan....

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Get into the minds of Angel Investors: How do they Think?

Get into the minds of Angel Investors: How do they Think? | Startups | Scoop.it

Via Marc Kneepkens
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Wow !

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Marc Kneepkens's curator insight, April 14, 2013 12:49 AM


 

Want to know how 'Angel Investors' think?

 

Here are some answers on Quora  (7 at the time of this posting): the question was:


"As a first time angel investor, how do you approach a startup company you want to invest in?"


Mike Watson, Founder of SnapWorkSocial, SeriousLab...

Just ping me, ask for lunch, and tell me you have money. You'll have my attention. Not sure why it has to be more complicated than that.

Nicholas Chavez, Started and sold 2 companies. 

I've followed the following structure when I've heard of a company in which I am interested in investing:

1.  Read article about company
2.  Find CEO's firstname/lastname
3.  Search GOOGLE for generally accepted variations of FN/LN@company.com if the CEO is a good one, his/her email address is out there.
4.  Send CEO an email congratulating re: article, ask 2-3 intelligent questions
5.  CEO sends thoughtful reply.
6.  Thank CEO via email, mention you will be in the area "next Tuesday" and you'd relish the opportunity to sit down and chat about company's future, mention that you have some funding contacts.
7.  Sit down with CEO one on one.  If you do this right, you'll get a tour of the facility and will get to meet the folks that make the magic happen.
  
Adam Hoeksema, Co-Founder - http://www.projectionhub.com...

Haha you are opening yourself up for a lot of entrepreneurs to start pitching you right here on Quora. 

I think you need to sit down with the founders of the startup and determine:

  1. What problem do they solve
  2. Are they gaining traction
  3. What they need
  4. Why they need it
  5. When they need it
  6. And probably a host of other questions, but you have to ask the questions first.
  
Alex Schiff, I've got one.

If it's sincere, this is the best way to me: Be a user of my product, compliment it in a non-overzealous way, give me a piece of criticism or feedback on how we can improve, and then say, by the way, are you guys fundraising? I'm looking to get into angel investing, and this is what I have to offer: one-line pitch on why you're "smart money" and not just anyone with a big wallet.
  
Pete Griffiths, Multiple previous startups. 

Cash in hand.
  

Mike Moradi, Startup Guy

Like any other deal, a warm intro would be the best way, preferably via a trusted intermediary.  I tend to be wary of unfamiliar stakeholders, though if a lawyer/accountant/friend/business partner can vouch for you, it helps greatly.

But the cold call may also work.  Depends on the CEO...
Marc Diamant, I try to be helpful on Quora

I love talking about my product and would assume most founders do. Thats where it starts. Twitter, Quora, Linked In that's where I can be found.
  
____________

And another question, with 5 answers:


"What do angel investors want to see in a startup raising a seed round?"


Lee Weinberg, I invest my own money. That makes me an Angel investor. (Lawyer, Investor, Advisor)

  • A management team or real willingness to get one fast (after noting the product and customers, of course).
  • A good description of the product/business, addressable market and market size, and business model for making profits.
  • Some sense of who the customers are and the customer offering/sales proposition has been tested or discussed with potential customers.
  

Christine Herron, Co-founder/first employee at Cycle Pa...

Great team, compelling product, and believable customer acquisition plan.
  

Or-Tal Kiriati, Co-founder and CEO of Saveby.com, an ...

From my experience - it's the people, the initial team, that investors look at first (right after they got excited on your idea and I assume, at seed stage, initial execution...)

Ranjith Regulla, Love to be an Entrepreneur!!

It's the team which plays a major role, next to team idea plays major role..
  
Mike Prozan, Start Up Lawyer

Product and customers

________________

Here at Business Funding Insider, we hear from both sides: the Investor, and the Funding Seeker. Check for more articles on 'Angel Investors' here: http://www.business-funding-insider.com/find-angel-investors.html


________________

 

Our best advice? Get all this kind of information, in a more complete way, for less than $100.

We work with Growthink for best results. Here is a fantastic presentation, very informative already in itself, about approaching Angel Investors and obtaining funding. Lists of Angels included, most direct approach, $2 Billion of funding experience behind them, all money back guaranteed:


https://growthink.infusionsoft.com/go/fundingformula/gt4045/

Take your time to view this, it's a 20 minute video presentation.



_________________

Direct links to the Quroa questions:


https://www.quora.com/As-a-first-time-angel-investor-how-do-you-approach-a-startup-company-you-want-to-invest-in

 

https://www.quora.com/What-do-angel-investors-want-to-see-in-a-startup-raising-a-seed-round

 

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Startup Funding: The Fund-Raising Game Has Changed - 7 Ways To Raise Money For Your Business In 2012

Startup Funding: The Fund-Raising Game Has Changed - 7 Ways To Raise Money For Your Business In 2012 | Startups | Scoop.it

From the article intro: "Startup funds will be harder to come by in 2012, according to hundreds of venture capitalists polled in a recent survey by the National Venture Capital Association.

 

...

 

In spite of the gloomy funding forecasts, there's still hope for entrepreneurs in need of cash in 2012.

 

In fact, small-business financing options outside the venture capital industry are rapidly proliferating in the digital age.

 

With just a few clicks, anyone can pitch a business idea to the growing ranks of angel investors.

 

In addition, a number of Web services now provide platforms for entrepreneurs to raise small sums of money from large pools of people -- a process known as crowdfunding.

 

Even Congress is showing deference toward the Internet's capacity to connect businesses with capital, as lawmakers weigh rule-changes that would allow entrepreneurs to use social networks to sell stakes in their startups. (Under current securities law, entrepreneurs can only solicit donations.)

 

Still, a large share of startup funds continues to flow from the old-fashioned lender that small-business owners love to hate: banks.

 

...


So regardless of whether you run a tech startup on the hunt for strategic Silicon Valley investors or you own a local restaurant that's in need of nothing more than a simple bank loan, entrepreneurs must recognize that in the new year, the fund-raising game has changed."

 

Here are the new ways to raise in 2012:

1. Banks

2. Crowdfunding

3. Contest and Accelerator Programs

4. Online Pawn Shops

5. Friends and Family

6. Angel List

7. Revenue-Based Financing

 

Fibd out more:

http://www.huffingtonpost.com/2011/12/23/startup-funding-7-ways-to-raise-money-in-2012_n_1161801.html#s563590&title=Banks ;


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20 Reasons Why You Need a Business Plan

20 Reasons Why You Need a Business Plan | Startups | Scoop.it

20 Reasons Why You Need a Business Plan

Written by Pete Kennedy on Wednesday, April 9, 2008

1. To prove that you’re serious about your business. A formal business plan is necessary to show all interested parties -- employees, investors, partners and yourself -- that you are committed to building the business.

2. To establish business milestones. The business plan should clearly lay out the long-term milestones that are most important to the success of your business. To paraphrase Guy Kawasaki, a milestone is something significant enough to come home and tell your spouse about (without boring him or her to death). Would you tell your spouse that you tweaked the company brochure? Probably not. But you'd certainly share the news that you launched your new website or reached $1M in annual revenues.

3. To better understand your competition. Creating the business plan forces you to analyze the competition. All companies have competition in the form of either direct or indirect competitors, and it is critical to understand your company's competitive advantages.

4. To better understand your customer. Why do they buy when they buy? Why don’t they when they don't? An in-depth customer analysis is essential to an effective business plan and to a successful business.

5. To enunciate previously unstated assumptions. The process of actually writing the business plan helps to bring previously "hidden" assumptions to the foreground. By writing them down and assessing them, you can test them and analyze their validity.

6. To assess the feasibility of your venture. How good is this opportunity? The business plan process involves researching your target market, as well as the competitive landscape, and serves as a feasibility study for the success of your venture.

7. To document your revenue model. How exactly will your business make money? This is a critical question to answer in writing, for yourself and your investors. Documenting the revenue model helps to address challenges and assumptions associated with the model.

8. To determine your financial needs. Does your business need to raise capital? How much? The business plan creation process helps you to determine exactly how much capital you need and what you will use it for. This process is essential for raising capital for business and for effectively employing the capital.

9. To attract investors. A formal business plan is the basis for financing proposals. The business plan answers investors' questions such as: Is there a need for this product/service? What are the financial projections? What is the company's exit strategy?

10. To reduce the risk of pursuing the wrong opportunity. The process of creating the business plan helps to minimize opportunity costs. Writing the business plan helps you assess the attractiveness of this particular opportunity, versus other opportunities.

11. To force you to research and really know your market. What are the most important trends in your industry? What are the greatest threats to your industry? Is the market growing or shrinking? What is the size of the target market for your product/service? Creating the business plan will help you to gain a wider, deeper, and more nuanced understanding of your marketplace.

12. To attract employees and a management team. To attract and retain top quality talent, a business plan is necessary. The business plan inspires employees and management that the idea is sound and that the business is poised to achieve its strategic goals.

13. To plot your course and focus your efforts. The business plan provides a roadmap from which to operate, and to look to for direction in times of doubt. Without a business plan, you may shift your short-term strategies constantly without a view to your long-term milestones.

14. To attract partners. Partners also want to see a business plan, in order to determine whether it is worth partnering with your business. Establishing partnerships often requires time and capital, and companies will be more likely to partner with your venture if they can read a detailed explanation of your company.

15. To position your brand. Creating the business plan helps to define your company's role in the marketplace. This definition allows you to succinctly describe the business and position the brand to customers, investors, and partners.

16. To judge the success of your business. A formal business plan allows you to compare actual operational results versus the business plan itself. In this way, it allows you to clearly see whether you have achieved your strategic, financing, and operational goals (and why you have or have not).

17. To reposition your business to deal with changing conditions. For example, during difficult economic conditions, if your current sales and operational models aren’t working, you can rewrite your business plan to define, try, and validate new ideas and strategies.

18. To document your marketing plan. How are you going to reach your customers? How will you retain them? What is your advertising budget? What price will you charge? A well-documented marketing plan is essential to the growth of a business.

19. To understand and forecast your company’s staffing needs. After completing your business plan, you will not be surprised when you are suddenly short-handed. Rather, your business plan provides a roadmap for your staffing needs, and thus helps to ensure smoother expansion.

20. To uncover new opportunities. Through the process of brainstorming, white-boarding and creative interviewing, you will likely see your business in a different light. As a result, you will often come up with new ideas for marketing your product/service and running your business.

 

 

 

---

About Growthink

Since 1999, Growthink's business plan experts have assisted more than 1,500 clients in launching and growing their businesses, and raising more than $2 billion in growth financing.

Need help with your business plan? 

Speak with a professional business plan writer today.

Or, if you're creating your own PPM, you can save time and money with Growthink's new private placement memorandum template.

 

Dj Baker says

I find this a very simple, yet effective, breakdown of the reasons why a business plan is absolutely essential. From personal experience these 20 reasons our very much the truth. It is also very reassuring to know that there are trustworthy sites out there who do contain valuable information. Much appreciated, DjPosted at 5:24 pmdan says

thanks for the news letter, we are in the air cooling business. using air conditioners. we supply LG units. our major challanges has for the last 6 months been reliable suppliers of LG products at a competitives price. we do not have enough money to qualify as dealers hence we depend on thers, when i read the 20 reasons , i reflected to find out why our clients buy from us , and why others do not. thank you.Posted at 5:19 amSindi says

Thanks for this article. It is indeed a great eye opener for me. Didn't realise there's so much a business plan can reveal about any enterprise.Posted at 1:49 pmMohammed Ajmal says

Thanks for the all this valuable info free of cost.Posted at 11:22 ammanas says

hi all this site such a wonder full i would like to thanks to all of u those who operating this websitePosted at 1:53 amSuzanne Muusers says

Just found this post. What a great list of reasons to write a business plan. I particularly like: 13. To plot your course and focus your efforts. All too often I meet entrepreneurs who have been running their business for years without a business plan, and their business shows it. Writing a business plan creates the INTENTIONS and structure for success. Thank you, SuzannePosted at 11:41 amprivate placement memorandum says

Wow Its a awesome article.It was very interesting for me to read the blog. Thanx for it. I like such topics and everything that is connected to this matter. I would like to read more on that blog soon.Posted at 5:10 ammoronica says

me too likey but too much muni. i very happy you write me.Posted at 4:33 pmmoncler shop says

I'm preparing on opening a flavored coffee bar in San Diego and my company companion is heading to leave his work and operate the business, even though I ongoing to operate my day time job. Would it be much better for each of us to leave our careers in dive in mind first? Or mainly because I possess a company companion prepared to operate it entire time to remain at my present work and never arrive right up until the company is established?Posted at 8:45 pmSamantha says

I think if you are looking forward to have a business then you must have a very well structured plan otherwise your business might not bring any good to you. Sam from Calgary ListingsPosted at 2:35 pmMia says

A good plan is a must for everyone who is going to make some mark in the business. It should be implemented too. I'm currently finding out some herniated disc treatments and I think I'll get some help soonPosted at 4:18 pmSamantha says

Sometimes I wonder how can someone start a business without a plan but there are people who actually do that but I'm sure their business doesn't last for long. The things that you mentioned above are absolutely necessary. Thanks - hemorrojderPosted at 6:42 amSamantha says

That is a great post! I missed few of the points that you have mentioned above but I'm going to be a little more watchful next time. Thanks! Samantha from Cat Health TipsPosted at 6:14 amjenny says

I would like to thank you for bringing this forward as this information is gold - fastighetsmäklarePosted at 12:45 pmJoyce says

Wouldn't it be nice if everybody knew all this before they start out. nikon d3100 reviewPosted at 8:09 amPhillipa says

You have brought forward a very good explanation for the things and I would like tyo thank you for that - diatomaceous earth food gradePosted at 8:30 pmEva says

I like the first 5 ones. This article is a good insight for people related to this field. video clips onlinePosted at 5:20 amAmanda says

Business plan is a must to succeed, whether it is offline or online. On My Blog I talk about factors that are required for online success.Posted at 6:43 am
Via Marc Kneepkens
Jose Gonzalez's insight:

Very true !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

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Marc Kneepkens's curator insight, July 21, 2013 10:35 AM

Excellent reasons for writing a Business Plan

Marc Kneepkens's curator insight, July 21, 2013 11:07 AM

Check this "Review of Growthink's Business Plan Template":

 http://www.business-funding-insider.com/business-plan-template.html



Get your Free Business Plan Template here: http://www.business-funding-insider.com/free-business-plan-template.html

Melissa Terrazola's curator insight, October 29, 2014 4:44 AM

This article is great. Business plan is a must to succeed

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Hacking Kickstarter: How to Raise $100,000 in 10 Days (Includes Successful Templates, E-mails, etc.)

Hacking Kickstarter: How to Raise $100,000 in 10 Days (Includes Successful Templates, E-mails, etc.) | Startups | Scoop.it
Mike Del Ponte co-founded Soma, which raised more than $100,000 on Kickstarter using virtual assistants and free apps. I first met Mike Del Ponte two years ago when he was running marketing at Bran...

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Jose Gonzalez's insight:

Exactly my point !

Thanks,

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Marc Kneepkens's curator insight, May 5, 2013 9:37 AM

Fabulous advice from Tim Ferris. Check out this strategy if you're serious about a succesful crowdfunding campaign.


Some basics about crowdfunding: http://www.business-funding-insider.com/crowdfunding-startups.html


Use the Crowdfunding Pitch Formula from Dave Lavinsky to top it all off, watch the presentation video: https://growthink.infusionsoft.com/go/freemoney/gt4045/