What you should know before approaching investors
Let’s say you’re a budding entrepreneur, you have a brilliant idea for a business and that you believe in your heart-of-hearts that it’s a winner, but you also know that you don’t have enough funds to bring your idea to market. So you think “Ah ha, I’ll raise the funds. There’s billions of investor dollars out there waiting for an idea like mine and I read of projects being funded all the time.” Great, that’s music to our ears and what this country is built on, but before you go rushing off to meet investors, make sure you’re prepared! Raising funds for a project is practically a full-time job, so you need to be careful with your timemmm.
In the white paper Startups Need To Think Like An Investor To Get Funded, KENOVA has created a list of over 50 investor perspective guidelines to successfuly prepare to meet with investors and convince them to fund their project.
For example, you need to know that if you have debt, such as a business loan, a maxed out credit card or you’ve sunk your life savings into your startup, this is a risk reducer for the investor, as they want to see you have skin in the game. BUT, make it clear that the investos’s money is not going to be used to pay off the debts and replenish your savings. You need to show that their money is going to be used to accelerate the growth of the project!
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