From 2015 to 2021, African startups collectively raised about 900 million U.S. dollars. That’s a lot of money. Do you think you have what it takes to raise a fraction of it? Think again.
The competition between the startups is fierce. And without the right kind of technique, your fundraising campaign would be a disaster. This article covers some essential tips and tricks that will help you in your fundraising campaign.
First Things First
Before you even get to fundraising, introspect the startup from an investor’s perspective. Make sure that it’s appealing to the investors by taking care of three things—actually four. You require a good idea, and equally good product, and a hardworking team. The fourth factor is luck—being at the right place at the right time.
- Preparation
Preparation can make or break your fundraising campaign. The moment you realize that the startup might need additional funds, start the practice. That includes listing down all the possible investors and venture capitalists. The next step is to refine that initial list. Research about the listed potential investors and narrow it down to the ones that match your business needs.
- Time is of Essence
Time is an essential but often ignored part of fundraising. It’s best to start planning 3-4 months before the fundraising process. This is also a part where you can seek the help of a team member. You can share your responsibilities of running the startup to have more time preparing for the fundraising.
- Ditch The Traditional Pitch
A killer pitch is one where you sell the idea of your startup, where you tell the story behind that idea, and where you get to the point as soon as possible. Just because a traditional pitch bores an investor to death doesn’t mean it’s a killer pitch. A killer pitch is one where you sell the idea of your startup, where you tell the story behind that idea, and where you cut to the chase as soon as possible.
- Story Time
When preparing your pitch or a presentation, it’s easy to get caught in the complex set of numbers. Telling a story behind the initiative can help an investor see your startup as something much more than numbers. As an African startup, you can tell your story like how your startup will impact African lives.
- Networking
Your own researched list of potential investors can only get you so far. Ultimately, you’ll need to rely on your social networks to find your perfect fit. Networking involves building up your reputation and connecting with like-minded individuals. So, when you present an idea, people in your network are likely to be interested in it, or they might refer you to someone who’d be interested in your opinion.
Raising funds for your startup is a necessary evil. And it can be quite an intimidating task. But with the techniques mentioned in the article, you will be able to close an investor and generate the necessary funds quickly