• February 2019
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How can a new startup raise seed funding from investors?

My answer to How can a new startup raise seed funding from investors?

Answer by Raad Ahmed:

You can raise money from investors by making sure that you present your startup in an organized and realistic manner that really sells not only your business, but also your overall team. Investors want to know that you have what it takes to succeed. Here are a few tips to attract investors:

  • Be sure that you’ve keyed in on the right investor. If you are working with a technology-related product, don’t try to pitch to fashion investor. Sometimes startups focus on the success of the investor rather than taking the time to research what the investor is actually interested in. Make sure that you’ve selected investors that are motivated to invest in your type of company. A bit of research on your part could go a long way in raising funds.
  • Be thorough, but concise. There are two types of pitches that go really bad—those that are too long and those that are too short. While you should definitely have a business plan, don’t take a 50 page document to a meeting and expect the investor to actually read it or even thumb through it. Instead, provide a condensed version that touches all of the high points and create a solid PowerPoint presentation that explains your concepts, but does’t drag on. Make your slides engaging and informative without being too wordy.
  • Showcase your expertise. Be sure to discuss what makes you a solid founder. This is a great time to talk about your education and experience. However, don’t forget to highlight the expertise of your team members as well. Investors love to know that you have a solid network and that everybody has some sort of valuable role in the business.
  • Be realistic. Don’t just talk about the awesome financial projections (although, please include that), but also be real about the risks associated with the business. You may think this makes you vulnerable, but an investor will view that as a realistic approach and that you have considered the potential issues in the future.

Investors are certainly a critical component to a startup. If you’d like to discuss your options or would like additional guidance, a startup attorney is a great place to start. LawTrades can help by connecting you to a top startup attorney that has vast knowledge in this area. If you are looking for affordability and flexibility, you should check out our website.

How can a new startup raise seed funding from investors?

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