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MenuWe accepted by Wefunder.com for Reg CF. How could I reach to investors?
We accepted by Wefunder.com for Reg CF. How could I reach to investors? Here is our page, please recommend for network.
Answers
This is great for you! Congrats! Yesterday I posted some tips on Linkedin, they can be useful for you when reaching out to Investors:How can startups find matching Investors?
Fundraising isn't just about raising money...
It's about much more things... #startup founders need to see the process as matchmaking.
These tips might help to match your startup against the right investors:
✔️ Define what you need in terms of money
✔️ Define what you need besides money
✔️ List the investors that invest in your space.
✔️ List Investors that have the experience and contacts that you need.
✔️ List Investors that invest an amount of money 3 to 10 times bigger than what you need.
✔️ List Investors that have an investment portfolio that can bring your startup network effects and others and boost growth.
✔️ List both male and female investors as diversity is needed for you to have all the perspectives..and focus on one gender, and a generation whose problems your startup is solving.
Reach out to Investors using warm introductions, specially in the US.
Your relationship with an Investor is just like a marriage, and from which it is difficult to divorce...
So, besides the above mentioned there are other aspects that you need to take into consideration, as you will be meeting, reporting, and dining with these investors:
👉 What is their personality?
👉 Do you see yourself connected with that person for at least 5 years?
👉 What are your values and theirs?
👉 Do your startup goals match theirs?
The last but not least, a good marriage might end with a good divorce, if you have a good pre-nuptial agreement!
This is excellent. Well done, without knowing more, if I see correctly you are based in the US or are willing to consider US investors?
A) This is great because in the US under certain conditions (please inform yourself to ensure you oblige to the legal standards) direct marketing is allowed. I highly recommend that you reach out directly to investors, via email and phone calls. This will probably have the largest chance of success since it is very targeted and does not cost much. To reach out you can research contacts yourselves or alternatively you can use B2B access platforms or B2C access platforms.
B) You can hire an agency who does this for you, so someone who otherwise focuses on marketing but gets you lead for investors instead
C) experiment with digital marketing and run ads
D) contact directly others in similar markets who fundraised using your platform and get their tips for free. It often helps to understand what actually worked for them and you have the common connection of using the same platform
Of course one would need to better understand your situation, so the advice can be more tailored, but I think you should be very good to go with A)
Hi there Otatade Okojie here one of the greatest ways to reach out to investors is on LinkedIn. LinkedIn groups and engaging individuals, some individuals offer some incredible packages where you can have meetings with investors, pitch to investors, show your pitch deck to investors. You have to make sure that when it's time to engage investors you are ready. Have a sense of why they should invest in your product, is it already bringing in revenue, where will the flow of income continue to come from? What are its strength, what will be it's positioning in the market? What is its unique selling point, what demographic will it appeal to? Why would consumers or if it's a B2 b base be interested in your offering? What problem is it solving?
Related Questions
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What is the average cost to close a round of seed funding?
I'm reluctant to say "it depends," but legal expense for a true seed round varies dramatically based on: 1. Whether the investment is structured as a priced equity round vs. convertible debt (or variations on that theme such as "SAFE") 2. Number and location of investors, timing of closing(s), and prior angel investing experience 3. Company counsel's efficiency and fluency in industry norms 4. "Deferred maintenance" necessary in areas like corporate formation, founders' equity issuance and IP assignments. #4 is the item that takes many entrepreneurs by surprise. On the investor side, it leads otherwise very savvy observers to give unrealistically low estimates of legal expense because they assume starting from a clean slate. This item is also most resistant to automation or standardization because startups come into being many different ways; each story is unique. I would put the lowest estimate at around $3K, assuming the company is already formed as a Delaware corporation with clean, basic documents, has issued founders' stock and handled related IP and other matters, and simply needs to issue a convertible note to one or two accredited investors with minimal negotiation of documents. The highest I would expect for a true "seed round" is about $15K, where some corporate cleanup is needed, the deal is structured as a streamlined kind of preferred equity (e.g., Series Seed), there are multiple closings with investors on different dates and terms, etc. Beyond that point we're really in "Series A" territory, doing things like creating a full set of VC preferred stock investment documents (about 100 pages), negotiating with investors' counsel (at the company's expense), and so forth. The expense and complexity of a traditional Series A deal have been the main impetus behind using convertible debt or Series Seed-type documents for seed-stage investments of less than $1 million or so in recent years. I hope this proves helpful. Always happy to chat and answer further questions.Antone JohnsonAJ
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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.Tom WilliamsTW
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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, GiulianoGiuliano SeneseGS
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When raising money how much of equity do you give up to keep control? Is it more important to control the board or majority of shares?
It entirely depends on the kind of business you have. If you have a tech startup for example, there are pretty reliable assumptions about each round of funding. And a business plan and financial forecasts are almost totally irrelevant to sophisticated tech investors in the early stages of a company's life. Recent financial history is important if the company is already generating revenue and in that case, a twelve-month projection is also meaningful, but pre-revenue, financial forecasts in tech startups mean nothing. You shouldn't give up more than 10-15% for your first $100,000 and from that point forward, you should budget between 10-20% dilution per each round of subsequent dilution. In a tech startup, you should be more nervous about dilution than control. The reality of it is that until at least a meaningful amount of traction is reached, no one is likely to care about taking control of the venture. If the founding team screws-up, it's likely that there will be very little energy from anyone else in trying to take-over and fix those problems. Kevin is correct in that the board is elected by shareholders but, a board exerts a lot of influence on a company as time goes-on. So board seats shouldn't be given lightly. A single bad or ineffective board member can wreak havoc on a company, especially in the early stages of a company's life. In companies outside of tech, you're likely going to be dealing with valuations that are far lower, thus likely to be impacted with greater dilution and also potentially far more restrictive and onerous investment terms. If your company is a tech company, I'm happy to talk to you about the financing process. I am a startup entrepreneur who has recently raised angel and VC capital and was also formerly a VC as part of a $500,000,000 investment fund investing in every stage of tech and education companies.Tom WilliamsTW
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What happens to a convertible note if the company fails?
Convertible notes are by no means "earned." They are often easier to raise for early-stage companies who don't want to or can't raise an equity round. Equity rounds almost always require a simultaneous close of either the whole round or a defined "first close" representing a significant share of the raised amount. Where there are many participants in the round comprised mostly of small seed funds and/or angel investors, shepherding everyone to a closing date can be very difficult. If a company raises money on a note and the company fails, the investors are creditors, getting money back prior to any shareholder and any creditor that doesn't have security or statutory preference. In almost every case, convertible note holders in these situations would be lucky to get pennies back on the dollar. It would be highly unusual of / unheard of for a convertible note to come with personal guarantees. Happy to talk to you about the particulars of your situation and explain more to you based on what you're wanting to know.Tom WilliamsTW
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