Guest post by Innovate UK
Are you looking to gain funding from potential investors for your startup?
Adopting the wrong approach can make it seem like a mountainous task, regardless of where your business currently sits in the funding cycle. Gaining investment can be crucial to long term success, and should be a priority with any small startup.
To help aid your efforts in finding startup funding, we’ve compiled a list of tips and tricks that’ll keep you a step ahead of the competition.
So if you’re wondering about new ways to target potential backers, or just want to know what’s best for your business, we’ve got everything you need with our guide to startup funding.
Make Sure You Know Your Funding Stage
You’ll need to be aware of where your business currently falls in the funding cycle. Ask yourself some crucial questions as to the progress you’ve made thus far. How far along development is your product? Are you earning real profits from your services?
Knowing your position will help enable you to understand the types of investment you should be asking for.
Demonstrating self-awareness with regards to your funding stage will attract potential backers and establish that you understand your business, the market and the goals you’ve set yourself.
Be Clear On Why You Need Funding
Before you set out asking for money, you’ll need to know why you need it.
Prepare some details and examples of where and how the additional funding will be used in your business. Creating an interesting pitch that shows confidence, practicality and clarity will provide a strong impression.
Each funding stage will have different requirements and needs, so you’ll need to get familiar with these. The amount of finances you ask for will have to be appropriate and within your means!
Find Out More about Your Targeted Investors
Always make the effort to research those that you’ll be pitching to.
Familiarise yourself with the general behaviours and risk appetites of investors, as they’ll differ at each stage and you’ll need to know what kind of things they’ll be looking for. Being in the know is vital!
The better your knowledge on backers, the more informed an approach you can adopt. The types who will be drawn to you will also hinge on business milestones, financial needs and current progress reports.
Be sure to keep up to date on all three and have an awareness of the types you’re appealing to. Getting this right can seriously help boost your chances of success!
Get Your Timing Right
Make sure you know which areas of your startup will be expanded and developed in the future, as recognising where your focus needs to be will make clear when the best time is to make your pitch.
Timing is an important element in the build-up to your request, so be sure to get it right! You’ll steer clear of running out of steam at a later stage when new investors are interested, and you’ll be able to continue along a sustainable path of growth.
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