Silicon Canals
TRENDING
  • Mobility
  • AI
  • FinTech
  • Software & SaaS
No Result
View All Result
  • Home
  • News
    • COVID-19
    • Startups
    • Scaleups
    • FinTech
    • AI and chatbots
    • Travel & Mobility
    • Software & SaaS
    • Health & Medtech
    • (Crowd)funding
    • Blockchain
    • Internet of things
    • Hardware
    • Accelerators
    • E-commerce
    • Cybersecurity
    • Gaming & Virtual Reality
    • Drones
  • Features
    • Promoted content
    • How-to
    • Knowledge & Insights
    • Guest Contributions
    • Scaling-up in Europe
  • Amsterdampartner
  • Events
  • Newsletter
  • Jobs
  • About
    • Partner with Silicon Canals
    • Team
    • Contact
  • Home
  • News
    • COVID-19
    • Startups
    • Scaleups
    • FinTech
    • AI and chatbots
    • Travel & Mobility
    • Software & SaaS
    • Health & Medtech
    • (Crowd)funding
    • Blockchain
    • Internet of things
    • Hardware
    • Accelerators
    • E-commerce
    • Cybersecurity
    • Gaming & Virtual Reality
    • Drones
  • Features
    • Promoted content
    • How-to
    • Knowledge & Insights
    • Guest Contributions
    • Scaling-up in Europe
  • Amsterdampartner
  • Events
  • Newsletter
  • Jobs
  • About
    • Partner with Silicon Canals
    • Team
    • Contact
No Result
View All Result
Silicon Canals
No Result
View All Result

9 Points to Win More at the Fundraising Game

Editorial team by Editorial team
January 18, 2017
in Knowledge & Insights, (Crowd)funding, Venture Capital
0
9 Points to Win More at the Fundraising Game
5
SHARES
LinkedInTwitterWhatsAppFacebook

As developing a new product is time-consuming and unpredictable, the ability to seek more funding is vital to startups. The process of searching, applying and pitching could be tedious and overwhelming. Berlin-based VC firm Point Nine Capital has listed nine rules to abide in order to be more effective at fundraising. These nine points can be divided into three core strategies. Follow them to increase your chance of success.

Strategy No.1: Knowing your secret weapon, the battlefield and the targets

1.      Product

This is the secret weapon you have been dreaming about for months or years. I know you can describe it at length but you need a concise description for the future investors. Make the answers to these questions short, special and memorable:

 - Partner content -
Cost of software - The Software house
The cost of building software
Marek Gajda, CTO of The Software House, shares his insights on building high-quality...Show More
Marek Gajda, CTO of The Software House, shares his insights on building high-quality software. Show Less
Read more
  • What is your “special power”? – or the problem your product solves
  • Who would love it? – or the group of customers it helps
  • What is the distinguished core feature?
  • How will it develop in the next six to twelve months?

Show, don’t tell

Let the investors try your product. If it is not quite ready, send them a demo, demonstrate the details with videos and screenshots.

2. Competitions

What is happening on the battlefield?

You need to know your competitors, their strengths as well as weaknesses, and the gaps on the market. Most importantly, show investors the way you will build your long-term competitive advantage.

3. Target market

You don’t need a win on all fronts, but the right ones. Make sure to choose the most suitable targets and get to know them well, meaning:

  • Be as specific as possible: “2 – 4 years companies, with 200 – 3,000 employees, in Western Europe”, works better than “small and medium-sized companies”
  • Use reliable data to estimate the size of the market
  • Study the structure, current trends, and future opportunities

Strategy No.2: May the odds be ever in your favour

Learn the data and its meanings because numbers speak louder than words.

4. Traction

You need to track the Key Performance Indicators (KPIs), from the launching point to date, so that you can show them to the interested investors. Some common KPIs for a SaaS company are:

  • Visitors & Signups
  • Paying customers
  • Monthly Recurring Revenues
  • Customer Acquisition Costs
  • Cash flow

A cohort analysis takes the numbers you track and give readers a clear overview of the product’s usage and retention. Basically, it turns hard raw data into something more comprehensible. Better still, show the number and size of opportunities in your sales pipeline. They indicate future growth and give investors the guarantee they would appreciate.

5. Acquisition

Specify how you have gained the current paying customers, how you plan to acquire more in the future, and at what cost.

Some acquisition channels are:

  • SEO
  • Paid search
  • Direct sales
  • Partnerships
  • Content marketing
  • Events

Nobody puts a gun to your head to make you use all these channels. However, you want to show that you didn’t (and won’t) hesitate to hustle.

6. Pricing

Your price determines your revenue, and consequently the return of investment. Therefore, investors would be interested in how you price your product, in comparison with your competitors.

Strategy No.3: Humans – the ultimate power

7. The Team

An innovative idea could wow investors, but they tend to put the bet on the people. Make sure you show off the strengths of the founders and the quality of the first hire. Highlight all the technology as it is the key to the success of most SaaS projects.

8. Money = ???

Your team need to commit to delivering certain milestones with the funding you’ll get.

Show funding history of your startup, also: who invested in you and what your achievements were.

9. Testimonials

Provide feedback from a favourite client or an industry expert. Investors would like it more if you can arrange for them to talk directly with your client so they can see your product from a different perspective.

Though investors prioritise differently on their selection, most of them would want information on these above points in one form or others. Make sure you have them prepared and best of luck with the fundraising efforts.

 

(h/t: What do we base our investment decisions on? Savina van der Straten/Point Nine Capital)

Piggybank image by Shutterstock

 

 

close

Want to stay on top of the latest rounds, coolest tech and hottest startups?

Subscribe to our free, daily news blast and stay up-to-date!

Check your inbox or spam folder to confirm your subscription.

 - Partner content -
Hiring during COVID Intrinsic Search
Hiring SaaS sales executives
Check out the do's and don'ts while hiring SaaS sales executives
Check out the do's and don'ts while hiring SaaS sales executives Show Less
Read more
Tags: DIYfundingHow toVC
ShareTweet1SendShare2

Partner content | Work with us

Future of coding: CTOs discuss low-code versus custom code software development for their business

Why now is the perfect time to start hiring for 2021

SaaS sales in 2021: 9 predictions from an industry expert

Diversity in hiring for SaaS: the often overlooked topic of ageism

Boost your scale-up’s growth by outsourcing to these top Eastern European software development companies

Subscribe to our daily newsletter

Check your inbox or spam folder to confirm your subscription.

Breaking news from Amsterdam | Partner

Amsterdam-based Media Distillery uses AI to understand what’s inside video; secures €3M

These powerhouse female VCs are funding Amsterdam’s most innovative and diverse startups

Amsterdam-based WeTransfer reportedly planning a stock market flotation

Amsterdam-based Peak Capital’s portfolio firm Flinders acquired by Nine United; VC firm’s first exit of 2021

Advertisement

Trending

11 AI leaders from Amsterdam to watch in 2021
AI and chatbots

11 AI leaders from Amsterdam to watch in 2021

January 7, 2021
Adobe flash
News

Adobe pulls the plug on Flash, but here’s how you can still play some iconic Adobe Flash games

January 4, 2021
eva de mol female vcs
Amsterdam

These powerhouse female VCs are funding Amsterdam’s most innovative and diverse startups

January 6, 2021
  • About Silicon Canals
  • Partner with Silicon Canals
  • Contact us
  • Newsletter
  • Disclaimer
  • Privacy policy
  • Terms & Conditions Silicon Canals

Silicon Canals 2014-2020 | Website: Bright Idiots

No Result
View All Result
  • Home
  • News
    • COVID-19
    • Startups
    • Scaleups
    • FinTech
    • AI and chatbots
    • Travel & Mobility
    • Software & SaaS
    • Health & Medtech
    • (Crowd)funding
    • Blockchain
    • Internet of things
    • Hardware
    • Accelerators
    • E-commerce
    • Cybersecurity
    • Gaming & Virtual Reality
    • Drones
  • Features
    • Promoted content
    • How-to
    • Knowledge & Insights
    • Guest Contributions
    • Scaling-up in Europe
  • Amsterdam
  • Events
  • Newsletter
  • Jobs
  • About
    • Partner with Silicon Canals
    • Team
    • Contact

Silicon Canals 2014-2020 | Website: Bright Idiots

X

This website uses cookies to ensure the best possible experience. We may share this information with our advertising and analytics partners. By clicking 'Accept', you agree to our use of cookies and similar technologies. More info