How to get funding: The “dos and don’ts” of raising capital from investors

Nearly a decade ago, we saw less than one percent of startups with the option to successfully secure VC financing. Flash forward to 2022 and the landscape has dramatically changed. Do you know how to navigate the fundraising landscape in the modern world?

Here are a few do’s and don’ts to follow:

Do start the conversation early.

It’s never too early to snag an investor geared towards your product/service. The sooner, the better. This may also work in your favor as funds evolve strategies and look to deploy capital at new stages through new structures and across new verticals.

Do ask questions of your prospective investor.

There are no stupid questions. Not only will asking questions inform you, but it will show that you are interested in the investor and you’re passionate about what you do.

Don’t let valuation get in the way.

When you’re first starting out, it’s ok to not hold yourself to a high valuation. You will grow, but you need to have patience when shooting for the top.

Don’t start a company with the idea of selling it in a few years.

You are doomed for failure if you only think about the bottom line. As stated above, you need to have a passion for what you do, and part of that involves sticking to your endeavor through good and bad times. Especially the good. Imagine if Steve Jobs sold Apple in the late 90s. 

These are just a few pieces of wisdom to use when securing funding from capital investors.

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