How do you persuade partners to provide seed funding for your startup?

Some key points from my experience: If you ever plan to startup or have already started up, Invest in building deep and wide network Your first partners (investors, team, customers) will be your first or second degree connections Find someone who's seen a similar journey as yours. Self-made people understand what does it takes to be a self made person. Cold reachouts don't work unless you have either a really solid team / traction / market / technology. All of them together in most cases Most important: Don't waste your time with anyone who's just toying around. Gazillion orgs and individuals are actively investing and supporting early stage startups on LinkedIn, and only a handful are actually doing it. EARN THEIR ATTENTION.

As a serial founder who has raised >50m in BA and VC funding, I often come across (first time) founders who seek (Seed) funding without clarity on the path they are embarking on. So BEFORE even engaging on identifying your target partner, ask yourself what taking on this partner implies aka what the strategic path is for you and your Startup when taking on this money. e.g. 1. you are taking on a strategic investor, which strategic direction does he bring (force you in?). Is this really smart money? 2. you are taking on a Seed VC means you will be running a "growth" marathon with the finish line being the exit and giving up your captain position. Seed funding can be a needed as fuel to grow but think twice on who the right partner is.

Leverage online platforms, events, referrals, and personal contacts for research and outreach. Develop criteria, considering investment strategy, portfolio, reputation, and feedback. Prioritize building genuine relationships; mutual understanding is key. Communicate your startup's vision and goals clearly. Network strategically, engaging in industry discussions and events to amplify your reach. This approach ensures partnerships that not only align with your startup's goals but also contribute significantly to its growth.

Identify your target partners The first step is to identify who are the best partners for your startup, based on : 1- The Industry' Medtech, Edtech, Proptech, Agritech, Hardware / Ai' 2- Stage 'Pre-seed, Seed, Pre-series A, Series A ...'. which will define your target, Are you going to join incubators or Accelerators, or you will target Venture or investment Capital, or even an Angel investor? 3- Vision & goals.' The Goals and the Cultures of your startup are the reflections of Founders, their Managers, Their team members, and Their investors ',Take care of this. You should also prepare a list of criteria to evaluate their fit and interest, such as their: 1- Investment strategy. 2- Portfolio. 3- Reputation. 4- Thier Team, Board.

Absolutely, identifying the right partners is key to startup's success. It's crucial to find those who understand the market and share the vision. Considering factors like investment strategy, portfolio, reputation, and feedback. Once he/she have the right partners on board, I believe it will significantly contribute to achieving the goals and taking the startup to the next level.

Knowing your audience is the key to any pitch, so you need to prepare different pitches or variations of it. You also need three versions of each variation: the full pitch, elevator speech, and bar pitch. You have to have your 30-60 second pitch, but also a pitch you can deliver in one to two sentences. If you are waiting for a drink and you strike up a conversation at a bar, you need to have a version of your pitch that makes them say "oh, tell me more about that." Distilling your pitch down to a minute and then down to a sentence is an important exercise. It forces you to think about what really matters about your product, service, or company until you have an instinctive understanding of why you are worth investing in.

Keep it concise, under 10 slides, focusing on key elements. Use clear language, engaging visuals, and data to support claims. Practice until your delivery is confident and convincing. Additionally, personalize your pitch to resonate with each partner, showcasing how your startup aligns with their specific interests and goals. Adapt your narrative to highlight shared values and collaborative potential, increasing the likelihood of a successful partnership.

At seed or pre-seed stage - basically upstarts, no one expects you to know a lot. They just expect you to know the right things. Sharing my experience below :) - Market Potential, Problem, Timing - How small can you start? How big can you become? - Business - WHY will you spend or earn anything should make sense in your deck. How fast or how much is probably the next question. 99% deck have second part right (projections) no idea WHYYY they will work - Founders Empathy (Team Buildingb Ability) Hustle (To stand the ground), Problem Solving (To Navigate) and - Ability to sell As a founder, you're the intern and the CEO and everything in between. So learn sales please Just try this.

Demonstrate honesty, transparency, and consistency in actions and results. Seek feedback actively, showcasing a commitment to improvement. Show appreciation and gratitude for their time. Additionally, find common ground beyond business, nurturing a more personal connection. Regular updates on your startup's progress reinforce reliability and commitment. These steps cultivate a strong foundation of trust and collaboration with potential partners.

Securing seed funding for a startup involves effective communication, a compelling value proposition, and building trust with potential partners. Be genuine, share your passion for the startup, its mission, and your personal commitment. Authenticity lays the foundation for trust.

Think of it as of wooing a partner in life. Faking won't work. Even if it work, it'll break in long term. You cant bore someone into liking you. You can only interest them into liking you. And in the world of investments, founder's mindset stability & business numbers are two effective tools to interest potential investors. It takes years to build a personal brand, which can only shine if it's backed by proven material evidence. So focus on business if you already don't have a personal brand or network Super boring founders having no network have raised billions of dollars on the back of having a good business 'approach' Understanding the use of word approach is very important to comprehend what I've written.

Building relationships based on trust and honesty can be a key factor. Sometimes, before focusing on profitability, it's essential to initiate the process of building trust and maintaining a good reputation. This not only ensures long-term profitability but also establishes potential partnerships for startup funding.

I speak to many young founders who are trying to raise. One common pattern I see is that they don't perceive the conversation in the right way. Any objection or comment from an investor is seen as a negative and a conversation turns defensive. Please understand that is other person is just trying to understand as much as you understand. And you can't restrict them into asking certain type or questions or expect them to share only certain kind of feedback. Structuring the conversation correctly, with right amount of boldness and humility, one should can build a solid rapport and good image Infact investors want to be proven wrong. It helps the odds of succeeding in the line of their business. (Remember 9/10 vc startups fail)

Provide factual and logical responses, supplementing with emotional stories. Showcase your adaptability and learning from challenges. Additionally, tailor your responses to highlight specific benefits for potential partners, demonstrating how collaboration can mitigate concerns. Personalize your approach, making it clear that you're not just addressing objections but are genuinely invested in creating mutual value through the partnership.

Compare offers and scenarios for a comprehensive view. Prioritize a win-win outcome to ensure long-term satisfaction. Flexibility is crucial; be open to creative solutions that benefit both parties. Establish a collaborative mindset, fostering a sense of alignment and mutual success. Regularly revisit and adapt the terms as your startup and the partnership evolve.

In the current world of incertitude of all markets avoid to celebrate the "victory" before you have money on your bank account. I've seen a full step back even after formal agreement of the terms. You and your company need to have enough runaway for a plan B