Many startups make the critical error of focusing solely on securing funds when seeding equities and often overlooking the strategic value of their investors. Opting for a group of microinvestors who can pool together the necessary capital without considering if these investors bring additional benefits beyond their financial contribution is detrimental to that business of yours. You haven’t done that business well! It’s a de-service and demerit. 📌 Here is what that decision has caused the business: ➡️ No strategic guidance ➡️ Complex decision making ➡️ Networking Benefits: High-value investors usually have good connections they have built over time, and these can become a ready network that startups can leverage for business growth and partnerships. Microinvestors usually do not provide these connections, depriving the business of significant growth support. ➡️ Quick ROI pressures Money is never all a business needs; it is just what fuels it. 💯 The ideal investors for startups are those who not only contribute capital but also bring expertise, guidance, and valuable connections. Speak to someone. You can still fix this. Be at the "Business Xcellerate Summit." Send us a message now to get the registration link. #businessproblems #businesschallenges #financialmanagement #businessconsulting #growwithingenium #ingeniumconceptltd #coachjenny #jenniferorode #brands #businesses #businesstips #brandgrowth #bxs #businessxcelleratesummit #startuptips
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Are you prepared to impress investors and secure that vital funding for your startup? This article outlines essential steps to get your business investment-ready, including having a solid business model, a capable management team, and robust systems and procedures. It also highlights the importance of a comprehensive business plan, realistic financial forecasts, and a compelling pitch deck. LTV Partners' Investor Ready solution enables startups to align their strategic goals with investor expectations. Partnering with LTV Partners can provide the edge needed to secure investment at the right valuation and terms. Want to enhance your startup's investment appeal? Read this article and reach out to LTV Partners today. #InvestmentTips #StartupSuccess #InvestorReady
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Which option would you favour: a VC partner whose primary role is providing capital or actively supporting the company's growth? Any founder seeking to secure capital should carefully consider which option is more beneficial. Both types of investors bring valuable contributions, and the choice between them can shape the future of any young business. The advantage of working with a capital-focused VC is straightforward. 𝗧𝗵𝗲𝘀𝗲 𝗶𝗻𝘃𝗲𝘀𝘁𝗼𝗿𝘀 𝗰𝗮𝗻 𝗼𝗳𝗳𝗲𝗿 𝗳𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗯𝗮𝗰𝗸𝗶𝗻𝗴, 𝘄𝗵𝗶𝗰𝗵 𝗶𝘀 𝗰𝗿𝘂𝗰𝗶𝗮𝗹 𝗳𝗼𝗿 𝘀𝘁𝗮𝗿𝘁𝘂𝗽𝘀 𝘁𝗼 𝗮𝗰𝗰𝗲𝗹𝗲𝗿𝗮𝘁𝗲 𝘁𝗵𝗲𝗶𝗿 𝗴𝗿𝗼𝘄𝘁𝗵 𝘄𝗶𝘁𝗵𝗼𝘂𝘁 𝘁𝗵𝗲 𝗶𝗺𝗺𝗲𝗱𝗶𝗮𝘁𝗲 𝗽𝗿𝗲𝘀𝘀𝘂𝗿𝗲 𝗼𝗳 𝗰𝗮𝘀𝗵 𝗳𝗹𝗼𝘄 𝗰𝗼𝗻𝘀𝘁𝗿𝗮𝗶𝗻𝘁𝘀. This economic freedom can be beneficial for early-stage companies. However, the capital-only approach has limitations. Startups may need more strategic guidance or industry connections, which could be critical in navigating challenges and seizing opportunities. On the other end of the spectrum are VC partners who go beyond simply providing capital. These growth-oriented investors actively participate in developing the companies they invest in, and their support can be just as valuable as financial backing. 𝐓𝐡𝐞𝐢𝐫 𝐠𝐮𝐢𝐝𝐚𝐧𝐜𝐞 𝐦𝐢𝐠𝐡𝐭 𝐢𝐧𝐜𝐥𝐮𝐝𝐞 𝐬𝐭𝐫𝐚𝐭𝐞𝐠𝐢𝐜 𝐚𝐝𝐯𝐢𝐜𝐞, 𝐢𝐧𝐝𝐮𝐬𝐭𝐫𝐲 𝐜𝐨𝐧𝐭𝐚𝐜𝐭𝐬 𝐚𝐧𝐝 𝐨𝐩𝐞𝐫𝐚𝐭𝐢𝐨𝐧𝐚𝐥 𝐚𝐬𝐬𝐢𝐬𝐭𝐚𝐧𝐜𝐞. Their involvement can be particularly beneficial during a startup's growth and expansion. The decision between a capital-only investor and an active, growth-oriented investor ultimately depends on the specific needs of portfolio companies. Founders must carefully assess where they are in their business journey and what kind of support they require to reach the next stage. However, this decision should not be taken lightly. Ultimately, the most effective VC partnerships are those in which the investor's contributions align seamlessly with the business's specific needs. For further insights into what makes an effective VC partner, explore Lumir Meloun article https://lnkd.in/d4ZjwhSu #VC #VentureCapital #VCpartner
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Want to become an angel investor? 😇💰 Entering the art of angel investing requires understanding the nuances of risk and reward. 📈📉 Critical strategies for successful angel investing include: Foundations: Provide capital to early-stage startups for equity or convertible debt, which is high risk but has the potential for significant returns. Be prepared for losses. Motivation may be financial gains, supporting innovation, or mentoring entrepreneurs. Finding & Evaluating Deals: Join angel networks, attend events, and leverage online platforms. Evaluate the business model, market potential, financial health, and team competence. Develop criteria for investable startups: team, market size, traction, and scalability. Staying Current: Keep up with emerging tech, market shifts, and trends. Pivot your strategy based on new trends. Engage with experts, attend conferences, and read industry publications. Financial Aspects: Learn valuation methods, such as venture capital, discounted cash flow, and comparable company analysis. Understand term sheet components, such as valuation, equity stake, investor rights, and liquidation preferences. Develop negotiation skills for fair deals. Join our Angel Networking. Contact +91 90522 40456. #angelinvesting #startup #entrepreneur #venturecapital #investing #fintech #business #innovation #technology
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"Its not you its me!" You never know exactly why VCs don't swipe right on your company, but I tell founders not to dwell on it. The list below from Jennifer Stojkovic has some good examples. Usually it is just that you aren't a good fit for the fund and there is no point spending time dwelling on it, just swipe right on some others and you will hopefully find someone you fit well with. Because remember that when you take VC money you are in bed with them until you sell your company. That is usually between 3 to 12 years. So swipe wisely. And get your timing right.
General Partner at Joyful VC | Ex-Silicon Valley Lobbyist | #1 Bestselling Author | Founder of VWS | Keynote Speaker | Rolling Stone Contributor
I've reviewed 400+ pitches as a VC and here are the top five reasons I reject founders. 1. They are not a thesis fit for the fund. 🚩 → Do your research on a fund before pitching them.💡 2. They are too far along for the fund. 🚩 → We aim to have 5-10% ownership in a round.💡 3. They are too early for the fund. 🚩 → We do not do first checks and aim to see proof of concept.💡 4. They are too late for the category. 🚩 → We often see pitches where the technology is too late in the market and there are too many competitors already.💡 5. They are not venture-backable. 🚩 → Almost HALF of the rejections I do are because companies are not for VC. Remember that only 1% of all businesses are a fit for VC.💡 These are just a few of the many reasons why startups aren't a fit for us. Since I constantly get asked questions about VC and investing... I'm opening up my comments below to answer questions for the next hour! Drop your questions below or share & tag folks who should see this. 👇🏼 --- I'm one of less than 5% of women in VC and trying to reach 100K followers by December 31st. Follow Jennifer Stojkovic and share this post for more.
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How Much Capital Can a Business Raise? Let's Break It Down! Raising capital is a crucial aspect of scaling any business, but the question often arises: "How much can we actually raise?" The answer depends on several factors. 🔑 1. Business Stage: For startups, early funding rounds (like pre-seed, seed, or Series A) are typically determined by the company’s valuation, market potential, and traction. As companies mature into growth stages, they can access larger sums through Series B or beyond. 🔑 2. Revenue & Financial Health: Businesses with strong revenue streams and clear profitability can raise larger amounts. Investors tend to look at key metrics like EBITDA, margins, and cash flow when determining funding limits. 🔑 3. Industry Standards: Different industries have different capital requirements and access levels. Tech startups might raise millions early due to scalability, while service-based businesses might see smaller, but more targeted funding rounds. 🔑 4. Investor Appetite: The size of the round can also depend on the current investor climate. When markets are favorable, businesses can secure higher valuations and raise more capital. 🔑 5. Type of Capital: Consider whether you’re raising equity, debt, or hybrid capital. Equity gives away ownership, while debt needs to be repaid—both affect how much you can raise. Remember, there’s no one-size-fits-all answer. The key is to raise the right amount at the right time, aligning your business goals with available capital. 💡 Thoughts on capital raising strategies? Let's discuss in the comments! #BusinessStrategy #Entrepreneurship #CapitalRaising #StartupFunding #Investing
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I found this post by @jenniferstojkovic and accompanying comment thread to be a good read.
General Partner at Joyful VC | Ex-Silicon Valley Lobbyist | #1 Bestselling Author | Founder of VWS | Keynote Speaker | Rolling Stone Contributor
I've reviewed 400+ pitches as a VC and here are the top five reasons I reject founders. 1. They are not a thesis fit for the fund. 🚩 → Do your research on a fund before pitching them.💡 2. They are too far along for the fund. 🚩 → We aim to have 5-10% ownership in a round.💡 3. They are too early for the fund. 🚩 → We do not do first checks and aim to see proof of concept.💡 4. They are too late for the category. 🚩 → We often see pitches where the technology is too late in the market and there are too many competitors already.💡 5. They are not venture-backable. 🚩 → Almost HALF of the rejections I do are because companies are not for VC. Remember that only 1% of all businesses are a fit for VC.💡 These are just a few of the many reasons why startups aren't a fit for us. Since I constantly get asked questions about VC and investing... I'm opening up my comments below to answer questions for the next hour! Drop your questions below or share & tag folks who should see this. 👇🏼 --- I'm one of less than 5% of women in VC and trying to reach 100K followers by December 31st. Follow Jennifer Stojkovic and share this post for more.
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Our recent engagements with founders at First Degree have been both enlightening and humbling, revealing a clear shift towards a more nuanced, strategic approach to venture capital. Here are some learnings: 🌟 The New Currency: Beyond financial investment, the most transformative investors offer mentorship, networks, and strategic insights, becoming true partners in growth. 🔗 Synergy is Key: The alignment between investors and founders on vision and values is crucial, underscoring the importance of relationships built on mutual understanding and shared goals. 📄 Term Sheet Nuances: Details matter. Founders are taking a closer look at the implications of control, equity, and exit strategies, understanding their long-term impact. 📈 Embracing Sustainable Growth: The wisdom of patient capital is becoming more apparent, favoring enduring success over the allure of rapid gains. 🔄 Beyond Traditional VC: The venture landscape is diversifying. Engagements with non-traditional investors are bringing fresh perspectives and new opportunities. 💵 Valuation with Vision: A balanced approach to valuation, prioritizing the long-term health and sustainability of the company, is emerging as a cornerstone strategy. 🗣️ Transparency Builds Trust: Open and honest communication lays the foundation for trust and alignment, essential for a successful partnership. These insights remind us of the humility required to navigate the venture space and the hope that drives us forward. The era of smart capital is about more than just transactions; it’s about building enduring partnerships that foster innovation and impact. At First Degree, we are more committed than ever to supporting founders who share this perspective. If you’re seeking a partner who values strategic alignment, transparency, and sustainable growth, we’d love to connect. Let’s explore how we can support your vision and achieve remarkable things together. #VentureCapital #StartupFunding #SmartCapital #StrategicPartnerships #Entrepreneurship #GrowthMindset
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Sitting in on investment discussions and supporting businesses' growth is incredibly interesting, but today's market conditions are also extremely challenging 😅 Startups need to be more strategic than ever. Before thinking about aggressive growth or an offensive strategy, here are the top three things we look at and believe are crucial: 1️⃣ Cash Runway: How much time do you have before needing to raise additional capital? Ensure you clearly understand your burn rate and the levers to extend your runway if needed. 2️⃣ Product-Market Fit: Do you truly understand your customers' needs? Before scaling up, ensure your product solves the intended problem in the market. 3️⃣ Unit Economics: Are you profitable on a unit level? Knowing if your business model is sustainable in the long run is vital, especially as funding environments tighten. At Utiliti Group, we work closely with our portfolio companies to evaluate these critical factors, ensuring they're positioned for sustainable success. Remember, the right foundation is essential before going on the offensive. 🛠️ #StartupAdvice #VentureCapital #ProductMarketFit #CashRunway #UnitEconomics #StartupStrategy
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Preparation is your secret weapon when seeking investment. With a solid business plan and a clear strategy, you'll not only impress potential investors but pave the way for your startup's success. Use Seed A Founder to perfect your approach. #FundingPreparation #StartupStrategy #SeedAFounder
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(っ◔◡◔)っ ♥ With odds like these, will you be playing by the existing rules of the technology investment game? ♥ 💣 𝗙𝗼𝗿 𝗲𝘃𝗲𝗿𝘆 𝘁𝗲𝗰𝗵𝗻𝗼𝗹𝗼𝗴𝘆 𝗶𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁 𝗱𝗲𝗮𝗹 𝗺𝗮𝗱𝗲, 𝗮 𝘁𝘆𝗽𝗶𝗰𝗮𝗹 𝗲𝗮𝗿𝗹𝘆-𝘀𝘁𝗮𝗴𝗲 𝗶𝗻𝘃𝗲𝘀𝘁𝗼𝗿 𝘄𝗶𝗹𝗹 𝗰𝗼𝗻𝘀𝗶𝗱𝗲𝗿 𝐨𝐯𝐞𝐫 𝟔𝟎𝟎 𝗼𝗽𝗽𝗼𝗿𝘁𝘂𝗻𝗶𝘁𝗶𝗲𝘀 💣 𝗙𝗲𝘄𝗲𝗿 𝘁𝗵𝗮𝗻 𝟭𝟬% 𝗼𝗳 𝗶𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁 𝗱𝗲𝗮𝗹𝘀 𝗺𝗮𝗱𝗲 𝘄𝗲𝗿𝗲 𝘀𝘁𝗮𝗿𝘁𝗲𝗱 𝗯𝘆 𝗮𝗻 𝗶𝗻𝘃𝗲𝘀𝘁𝗼𝗿 𝗿𝗲𝗰𝗲𝗶𝘃𝗶𝗻𝗴 𝗮 𝗰𝗼𝗹𝗱 𝗽𝗶𝘁𝗰𝗵 𝗱𝗲𝗰𝗸 𝗼𝗻 𝗲-𝗺𝗮𝗶𝗹 𝗳𝗿𝗼𝗺 𝗮 𝗳𝗼𝘂𝗻𝗱𝗲𝗿 These statistics should give any founder trying to raise investment for their science and technology company cause to stop and consider their approach. 𝗧𝗵𝗲 𝗱𝗮𝘆𝘀 𝗼𝗳 “𝘀𝗽𝗿𝗮𝘆𝗶𝗻𝗴 𝗮𝗻𝗱 𝗽𝗿𝗮𝘆𝗶𝗻𝗴” 𝗽𝗶𝘁𝗰𝗵 𝗱𝗲𝗰𝗸𝘀 𝘁𝗼 𝗮𝗻𝘆 𝗶𝗻𝘃𝗲𝘀𝘁𝗼𝗿 𝘆𝗼𝘂 𝗰𝗮𝗻 𝗳𝗶𝗻𝗱 𝗮𝗿𝗲 𝗼𝘃𝗲𝗿. Unless you have 12 to 18 months without generating income to play the numbers game and hope that your pitch deck is good enough to be the one in 6,000 that secures funding, the traditional approach to securing investment risks consuming all of your time, energy, and resources, with a very low chance of success. ✅ You want to find the best option for your company to use to secure investment ✅ You want to engage investors and need to understand what they look for and how to get their attention ✅ You're open to a proven faster, smarter and more successful approach to getting investors interested in your company 𝗖𝗼𝗺𝗺𝗲𝗻𝘁 “𝗗𝗥𝗜𝗩𝗘𝗡” 𝗯𝗲𝗹𝗼𝘄 𝗶𝗳 𝘆𝗼𝘂'𝗿𝗲 𝗼𝗽𝗲𝗻 𝘁𝗼 𝗮 𝗳𝗮𝘀𝘁𝗲𝗿, 𝗯𝗲𝘁𝘁𝗲𝗿 𝘄𝗮𝘆 𝘁𝗼 𝗲𝗻𝗴𝗮𝗴𝗲 𝗶𝗻𝘃𝗲𝘀𝘁𝗼𝗿𝘀 #founders #startups #technology #venturecapital #entrepreneurship #innovation #buildaunicorn
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