If you are facing challenge in raising funds for your business, then connect with us. We will connect you with best Consultants which will help you.
5 Fundamental Rules for Fundraising, specially for Growing Organisations or Start-Ups:
- Appropriate Valuation: Whether you are LinkedIn, Apple or Zynga in the public markets, or a $5 million food company, the quickest way to scare off investors is to set your valuation at a number that is disconnected from the results of a typical discounted cash flow analysis (DCF), evaluation of comparable transactions would value your company.
- Right amount of Capital: You must have to do valuation activity to find how much amount you need. For Example: $1 million newly established company trying to raise $4 million for a national add campaign without knowing that the campaign would even generate a strong ROI at a regional or local level.
- Realistic Projections: Your new product may taste great or provide best in class service, but if you are $1 million in revenue today, don’t project you will be $500 million in five years—it’s not realistic.
- Understand that everyone have competitors: Every business has competitors, and informing an investor that you have no competitor is a sign that you are not paying enough attention to your industry and the broader marketplace. As importantly, believing that you have no competitors is dangerous.
- Understand your Audience: It’s good negotiating practice to show that you have alternatives, but not a good habit to demonstrate you don’t have a handle on what investors are likely to actually invest.