What are common mistakes in fundraising strategy development?

Study fundraising like your life depends on it. Before jumping into developing your startup's fundraising strategy, you should do a thorough analysis of the funding landscape as well as an in-depth study on how different types of funding work. This is crucial to understand your customer (the investor), plan out your funding requirements, and ultimately map out a fundraising strategy that is effective and in-line with the type of product and service you are scaling. Networking with fellow startup founders and investors can help out in connecting the research to market actions.

Antes de entrar em campo, o time tem que saber onde está pisando, como joga o adversário, entre outros fatores relevantes. No mundo dos negócios, não dá para entrar despreparado. Quando se fala em buscar investimento, o mercado fica mais restritivo e seletivo. Seguem alguns pontos relevantes : 1) faça sua tese 2) análise o perfil dos investidores e seus track recordes 3) monte um funil 4) prepare um one page 5) estrutura um pitch deck

The ideal time to fundraise is actually when you're not actively seeking funds. Use this period to expand your network and strengthen your connections with other founders and investors. Before you begin fundraising, make sure you're prepared and investment-ready. This includes organizing a clean and structured data room and identifying the specific type of investor you're looking to target. Then leverage your network for warm introductions to generate momentum. Mentors and advisors who offer hands-on support can also be valuable assets during this process.

Une grande partie des entrepreneurs que j'ai croisé se focalisent sur leur produit ou service. C'est une bonne chose pour valider qu'un marché existe et valider que des ventes peuvent permettre au projet d'exister. Cette étape est nécessaire mais pas suffisante lorsqu'on souhaite lever des fonds. L'exercice de la structuration d'un Business Plan est obligatoire.

Common mistakes in fundraising strategy development include a lack of clear goals, failure to understand the audience, overlooking relationship building, ignoring diversification, and not investing in fundraising infrastructure. Additionally, organizations often fail to evaluate and adapt their strategies, underestimate costs and resource requirements, and lack integration with their overall strategy. Ineffective communication and messaging, along with impatience and unrealistic expectations, can also hinder fundraising efforts. To succeed, organizations should define clear objectives, understand their audience, cultivate relationships, diversify fundraising channels, invest in infrastructure, evaluate performance, communicate effectively

Une erreur assez classique est l'excès d'optimisme sur le temps que peut prendre une levée de fonds. Nous sommes entourés de sociétés qui ont réussi à lever des montants très importants mais on ne connaît souvent pas les détails de ces opérations (temps nécessaire, dilution, etc...). Ainsi beaucoup d'entrepreneurs pensent qu'1 ou 2 trimestres suffiront, d'après mon expérience la moyenne est autour d'un an.

Having unrealistic expectations about fundraising can be detrimental. Base your startup's valuation on traction, growth, and potential. Establish a realistic budget, timeline, and milestones. Understand that fundraising takes time, patience, persistence, and flexibility. Be prepared for rejection and feedback.

I've worked with quite a few hopefuls going crowdfunding. Unrealistic expectations is common. Many think it's a slam dunk guaranteed money in the bank. It isn't. Far too many variables involved. This is why some mistakenly think that by doing the same as another successful fundraising campaign they saw on a platform, that they will be guaranteed success. Raising capital is one of the toughest things a founder has to do.

I started and raised the funds for two 501c3s. I got all the money I needed from one person both times. I joined the blue hair societies friends of the ballet friends of the arts etc. People who give away millions. If you have a worthy project they will write a check.

Poor communication with investors, both before and after the pitch, can hinder fundraising efforts. Use clear, concise, and engaging language, avoiding jargon and technical details. Focus on the problem, solution, and value proposition. Communicate regularly, honestly, and respectfully, keeping investors updated on progress, challenges, and achievements to build trust and rapport.

Les investisseurs ne sont pas toujours spécialistes de votre secteur. Restez le plus simple et pédagogue possible. Lorsqu'il y a une question c'est qu'il y a une incompréhension, il faut donc y répondre le plus rapidement possible pour instaurer une confiance solide.

It’s essential to consider that you are competing with other startups for funds. Therefore you can build certain habits that could help you to stand out: - Replying fast to investors - Sending over any additional documents they might need that could help them to make the decision - Scheduling calls when it’s convenient for them not for the founder - Following up after every meeting with additional information, updates and answers to questions that were not answered properly during the meeting

Pour que la levée de fonds ait le plus de chance d'advenir, il faut : 1) créer de la confiance 2) limiter la défiance et la confusion Voici 4 conseils pour y parvenir : -communiquez les mêmes messages à tous les investisseurs. -privilégiez les communications écrites -transmettez des messages clairs -parlez-leur fréquemment. Une levée de fonds est une dynamique et la fréquence de vos messages doit maintenir cette dynamique.

Simple works 100% of the time. Any time you think an explanation is going to be a tough pill to swallow, keep it as simple and concise as you can. Keep it simple and honest every time. Investors are on your side and even if they're unconvinced on their strategy, there's a reason they have taken a bet on you. Moreover, making sure they deliver on the exit they have planned is important too!

Un investisseur rejoins un projet parce qu'il y voit un X-Factor. Il faut savoir insister sur ses différenciations, montrer son innovation et démontrer la raison pour laquelle les clients viendront chez vous plutôt que chez vos concurrents.

This is NOT about why You think your product is really clever, special or whatever other term for amazing. It is about why Your Target Customers will buy it. Why will you win, and continue to win. Customer proof points as invaluable. Initial orders. Letters of Intent (LOI). …but focus on why customers will buy, at the right price, and continue to do so. You are not going to get an investment because you’ve been clever. You’ll get the investment because you’re going to make the investor a return on their investment.

Em meio ao desafio da captação de recursos, a falta de diferenciação é uma armadilha comum. Projetos e iniciativas muitas vezes falham ao destacar de maneira clara e convincente o que os torna únicos e valiosos. A ausência de uma proposta de valor distinta pode resultar em dificuldades para atrair a atenção de investidores potenciais. Para evitar essa armadilha, é crucial identificar e comunicar claramente os elementos exclusivos que diferenciam o projeto, destacando como ele se destaca em meio a outras oportunidades de investimento. A diferenciação eficaz não apenas atrai investidores, mas também contribui para o sucesso duradouro na captação de recursos.

In a crowded field, having a "me-too" product or service won't cut it. Clearly articulate what makes you unique and why your solution fills a critical gap in the market. Nobody wants to get on the bandwagon just because the industry favors it. They want to know why and how your idea or concept can capture the market even when there are hundred others going for the same piece of pie. Don't be afraid to showcase your creativity and ingenuity. Even if the idea is generic, you can make a difference in execution and investors value such initiatives. Keep in mind, you need to make them invest focus and interest in you as a person before their capital. Don't be afraid to be bold and differentiate yourself from the pack.

With investor feedback, try to discern if it's centered on investor sentiment about certain markets, your pitch specifically, or your actual business risks. If you can understand better whether you are dealing with investment trends, a gap in your business, or your storytelling, you can better make adjustments.

Le feedback est ce qui vous permet de progresser. Cela ne veut pas dire que vous devez toujours corriger à la lettre ce qui vous a été reproché mais il faut savoir le prendre en compte et réajuster. L'entrepreneuriat c'est de l'itération pour toujours trouver le meilleur model possible, il faut donc montrer cette capacité lors des échanges avec les investisseurs potentiels.

Ignorar feedbacks representa uma armadilha significativa no processo de captação de recursos. Ao desconsiderar as opiniões e sugestões recebidas, projetos correm o risco de perder valiosas oportunidades de melhoria. Feedbacks, seja de potenciais investidores, parceiros ou da comunidade, oferecem insights valiosos que podem informar ajustes estratégicos e aprimoramentos na abordagem de captação de recursos. Ignorar essas informações pode resultar em estratégias estagnadas e falhas em se adaptar às demandas do mercado. Portanto, incorporar de forma proativa os feedbacks recebidos é crucial para fortalecer a estratégia de captação de recursos e maximizar as chances de sucesso.

First common mistake is expecting that the deals will close easily after the first call. That’s not how it works. Closing funding round could take between 3-6 months and might require several calls with investors, follow ups, updates and strong focus on the process. When there is fundraising going on founder should almost forget everything else besides eating and sleeping. It’s a full time job requiring strong outward focus and sometimes tons of sacrifices.

Feedback, even when critical, is a gift. Investors see and interact with many aspiring entrepreneurs like you everyday. Not just the money, but their judgement and acumen is also something you will benefit from. That being said, all investors might not be able to accurately judge your pitch. They too are only human.. The best you can do is to address their concerns. Analyze it objectively and use it to refine your pitch, strategy, and product offering. Moreover, if you are positive with their feedback and showcase a growth mindset, you will have an opportunity to build a relationship with them which might lead to greater things in the future.

It is easy to fall in to the trap of thinking you need investment. But challenge your plan:- - can you invest yourself? - can you get their (albeit slower) alone? - is the route to market an industry partner (so leverage their resources)? - can you secure initial Pilot or Proof-of-Concept orders (maybe at a lower price) that provide you the working capital you need? Answering questions like this will help confirm you’re ready for the downside of an investor (loss of control, etc.) and help you answer the Investor’s questions of Why? …or inspire you to go it alone. Either way, you’ll be stronger for challenging yourself and asking the questions.

Some other important tips: - Know your Investors, especially the key persons - Build a good relationship with them prior to the pitch - Always take the pre-alignment with your investors outside the formal pitch event itself

Avoid these mistakes Making investors sign an NDA Thinking that you need funding to scale Thinking that you in your current form are fundable