Why fundraising is just like jobhunting
Let’s face it, starting a business is tough. You have to build a client base, hire employees, find office space, get a website…. There are plenty of challenges, but the one that many find the most daunting is fund raising. Since the days of dazing investors with hot new technology ideas are gone, finding investment takes careful research, good negotiating skills, and, above all finding a win-win solution.
Many books and blogs have been written on fundraising knowhow but there is one piece of advice that cannot be repeated enough times: treat fundraising like you would treat your job application. It is all about people and the prospect of being tied together for years to come. Investment is money with strings attached and it is very important that both you and your investors share the same vision for the business and have compatible approach to business. You also need to remember that investors don’t want to invest in the best business out there; they want to invest in people who are able to exploit those opportunities that they are interested in!
How to get it right if you have never done it before? Just think about it as a job application. You have surely applied for jobs before and the basic principles are very much the same. Here is a brief summary of the key points for you:
- Make sure that you research the targeted investors thoroughly and understand what it is they are looking for. Does you/your company fir? If not, move on.
- Research the objectives, past performance and investment profiles of the investor to make sure that they meet your expectations. Not all investors are great to partner with and “help” from the wrong source may even ruin your business.
- See how and where your project fits with the investor’s expectations. Highlight these points. Then prepare a list on why your venture is their best bet and why you are the best person to make it into a real success. “Personalise” your business plan and pitch for every submission/presentation you have by incorporating these points.
- Be a good salesman when you pitch. Don’t lecture on your technology, but sell the idea and sell yourself. Remember to sell yourself/your company as the best vehicle for the job.
- Focus on the person/organisation you are pitching to and try to meet their style and culture. Don’t turn up in your best suit when invited for a chat and don’t wear jeans when got an appointment in the City; get it?
- Last but not least, be clear on what your non-negotiable expectations are and what are the point you willing to negotiate on. Remember you are negotiating for far more than money and the strings attached are just as important as the money for the future of your business.
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