Funding is when money is provided for a particular purpose. With firms it is the same, when money is poured into the firm by an outside source, the firm is said to be fundraising. There are various types of fundraisings like angel funding, venture capitalists, crowdfunding etc
As a crucial part of its process, the companies are very cautious about fundraising and have specialized teams to look after it. However, as start-ups are not well equipped with specialized skill sets, we have short-listed a few quick tips for your knowledge:
1) Budget outlines:
As fundraising majorly deals with monetary aspect having a clear idea about the budget comes in handy. Having an accurate budget is the key to attract the investors. To make a well functioning budget, we would suggest that you classify costs under various heads. This will tell you what to do with the investors’ money before you have it.
Budgeting goals are usually outlined in your business plan and in the investor’s pitch deck. From an investors perspective it becomes important to be able to get an overview of your firm. This is why your budget and finance goals have to be very clear
3) Detailed Project Report (DPR):
Investors observe how revenue is generated and the funding will be secured with DPR. Here, each and every detail about project is observed carefully. That’s why an efficient and practical oriented DPR attracts good investors resulting in good funding
Investors will have questions where they feel there is no clarity. It is thus necessary not to leave much space for speculations. If you have not figured out certain aspect of your budgeting, you should be clever enough not to let the investors see through it
Having ambiguity in your business plan or investors pitch showcases contradictions in your thinking. For investors it is a big turnoff as they won’t feel confident giving you their money
Scatter and disorganized paperwork is the last thing you want an investor to see. Be it new business plan or expansion, crystal clear paperwork is a must. It won’t be clever to go and meet investors with papers falling out of your briefcase
At Boston, we help you prepare perfect investors pitch and guide you in all other finance related matters for your start-ups. Get in touch on below details to know more.
Bangalore:+91 80 2572 4800
USA: +1 6099377291
Visit our website: www.bostonfagroup.com