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MenuHow can I find investors for a start-up in luxury fashion?
Looking for a list of investors who would consider a ticket size of $1-5 million for a couture house.
Answers
Angel.co and gust.com are two places to start. I would also buy premium access to matermark.com provides a full list of Venture Capitalist by sector who has invested in what and what are their portfolios composed of
One of my clients received $500k funding ONE week after we did our pitch coaching session. What they learned from our session is to be 100% focused and not to follow the "scatter gun approach" that they had for the 9 previous months.
Another client was looking for 50 investors, and after our coaching in 3 weeks he raised 65% of the funds he needed from 2 investors! He said
"After our coaching session, the big change was that I realized that I just needed to approach confidently the bigger investors first."
You can create very quickly a list of investors interested in your field if you ask the right questions and understand your business, and industry like a pro.
Then you can start creating a more effective and efficient investors pipeline.
Basic questions to have answers to are:
• Who will be interested in your couture house?
• Who will benefit from seeing you succeed?
• Who will be hurt from seeing you succeed?
• Who was in your shoes when they started?
• Who is not yet in the industry and wants in?
• Who are all the richest players in your industry?
Other questions you will need to look into once you've got a list of investors to approach is:
1. How do you create a dynamic in which angels and investors WANT to meet you... rather you wanting to meet them?
2. What is your strategy for meeting angels / investors, for having conversations with them and for building useful relations with them?
3. How do you present your pitch?
4. What kind of questions do you ask angels / investors?
If you want to dive in further on how you can raise the money your couture house, get in touch to arrange a call.
This is such a broad question. If you want a list, here is a list: http://www.entrepreneur.com/vc100
There is so much more to your question. Do you have revenue, do you have a current business, have you designed clothing before, have you manufactured clothing, there are so many things that I'd ask you to get a better idea of what investor you'd want to go after. However there are plenty of "lists" out there.
I have 25 years of experience working with early stage technology companies and investors.
I’m often asked about fundraising strategies for VC funds and angel investors. After raising capital and exiting from multiple startups and investing through 15 venture funds and dozens of angel investments I have seen thousands of deals.
I’ve found that the most productive use of time for both of us is scheduling a call through my profile.
There is more than one way to approach fundraising and to get noticed by those with the capital you need to get to the next level. Even the best funded and hyper-successful billion-dollar start-ups have been engaging in more fundraising rounds than ever before. Luxury Fashion brand Start-up can attract Investors in the following ways:
1. Online Fundraising Platforms
The past five years have given birth to virtually countless online fundraising platforms. They have become highly popular with sophisticated and accredited individual investors, angels, and even banks and funds looking for new ways to deploy capital. Even if you do not use online platforms to raise all the money you want, they can be powerful for getting noticed.
2. Social Media
Social media can be your best friend as a lean start-up or solo entrepreneur looking to test the market, gain traction, and attract investors. If you can get the social profile handles of well-fitting investors, it might only take one great message to connect with the capital your start-up needs. If this sounds like a fit for you, check out this Forbes article with the LinkedIn contact information for the top 50 angel investors based on investment volume. In the event you need VCs you can always go to Crunchbase and research for those investors that are actively investing in your industry. LinkedIn for cold messages or to seek quality introductions to pass the social proof with guarded investors such as Venture Capital investors. Simple emails have proven to be able to get the attention of notable angel investors and VCs.
3. Apply to Accelerators
Popular start-up accelerator programs always have an open invitation for applications from serious entrepreneurs. If accepted, you will likely get a modest check to keep developing your work, as well as introductions to other investors, business advice and help in staging future fundraising rounds. This is when the start-ups attending the program pitch to a crowd of investors.
4. Start Sharing Your Product
Fundraising and growth needs to be strategic to be successful. Yet far too many entrepreneurs and start-ups are not focusing enough on just getting their product or service out there in the hands of customers, influencers, and in turn, in front of investors. When you do, you can achieve better terms, from better investors.
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You are right that the range is wide. You need to figure what are good values to have for your category. Also, you can focus on the trend (is your DAU/MAU increasing vs decreasing after you make changes) even if benchmarking is tough. Unless your app is adding a huge number of users every day (which can skew DAU/MAU), you can trust the ratio as a good indication of how engaged your users are. For games, DAU/MAU of ~20-30% is considered to be pretty good. For social apps, like a messenger app, a successful one would have a DAU/MAU closer to 50%. In general most apps struggle to get to DAU/MAU of 20% or more. Make sure you have the right definition of who is an active user for your app, and get a good sense of what % of users are actually using your app every day. Happy to discuss what is a good benchmark for your specific app depending on what it does.SG
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What roles should the CEO and CTO have in a VC meeting?
The more important first impressions to leave a VC with are: 1) That you both are credible and inspire confidence that you can execute the plan you're fundraising on. 2) That there is good chemistry and a great relationship between the two of you; 3) That you can adequately address the concerns/objections/questions the VC raises. The CEO is expected to do most of the talking because the CEO should be the best person in the company at articulating the vision and value of the product and company you're building. If your CTO is comfortable presenting part of the pitch, it would be ideal for the CTO to speak to the product slides. The most important thing is for the CTO not to be a "bump on the log" meaning that you don't want them sitting there for most of the presentation with nothing to say. If you feel that's the case, you really shouldn't bring your CTO. Most VC meetings will not get technical and under the hood. Each question answered should be answered by the person best qualified to speak to that question. You should make eye-contact with your partner and use subtle body language to find a way to cue the other person to speak to that question or simply offer "CTO, would you like to answer that?" Bottom line, make sure that the CTO can speak confidently enough about the product and vision, otherwise -unless specifically asked by the VC - come alone. Fundraising is a big distraction to building and a good VC will always respect that in a first meeting, the CTO can be excused from attending in priority of building product. Happy to talk to you both on a call about helping get you feeling a bit more confident and prepared before your meeting. I was formerly a VC associate for a $500m fund and have raised money from VCs as a serial entrepreneur.TW
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What are the best books to learn about Leveraged Buyouts and other creative financing topics?
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What due diligence should be expected for a seed investment from seed fund(s) and individuals?
Very little. At the angel/seed stage, they're investing in the founders, so there's no expectation of patents, etc... They might check that you're incorporated in good standing, and ensure you have a solid startup/corporate lawyer, and have good employment and IP ownership agreements with your staff and contractors, and that's about it.JM
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How much equity is typically taken by investors in a seed round?
From my experience I would not advise you to go with Venture Capital when you're a start-up as in the end they will most likely end up screwing you. A much better source for funding would be angel investors or friends/family. The question of how much equity should I give away differs for every start-up. I remember with my first company I gave away 30% because I wanted to get it off the ground. This was the best decision I ever made. Don't over valuate your company as having 70% of something is big is a whole lot better than having 100% of something small. You have to decide your companies value based on Assets/I.P(Intellectual Property)/Projections. I assume you have some follow up questions and I would love to help you so if you need any help feel free to call me. Kind Regards, GiulianoGS
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