When you should start raising funds?
Seed money plays a decisive role in determining the future of the startup. Not only seed money but also when to raise this seed money plays a key role in determining your future business.
A founder should know about all the little things to increase their chances of getting what they want from who they want and most importantly when to want. Here are some questions you need to think about before raising funds:
1. Is the right team in place?
The right team just eases your work as a startup founder. With the right team, treating employees with respect, loyalty, and care is the most important thing so that they are just involved in the company as the founder.
2. Has the startup worked with industry experts?
Taking valuable feedback from experts like angels, partners, advisors, and industry players helps the startup in networking and founders in gaining credibility. In this manner, startups can improve the service, product, or idea before taking it to the market.
3. Is there a prototype?
You need to work on a prototype that you will showcase in front of your potential investors. Going to an investor without a prototype and a working product inevitably decreases your chances of getting seed-stage funds.
4. Have the potential investors been vetted?
Before meeting an investor, it is best to research the investor to build a relationship with the investor before the pitch itself. This way, the investors will be more inclined to come on board with the startup when they see your work shining through.
5. Is there a story for investors?
Investors love to hear a good story behind your startup. grabbing investors’ attention by moving them emotionally and with the unique vision, story, and idea behind your startup is a great way to get the funds. But make sure not to be dishonest!
6. Has the product been tested?
It is always in the best favor to test your product before showing it to the investors or launching it in the market. Get to know your customer, research the market and then think of raising funds accordingly.