The Must-Know Stages of Raising Money For Your Startup
📈 Dr Stylianos Kampakis, CStat 📊
Data Science | AI strategy | Web3.0 tokenomics design and auditing
Raising money for your startup is a daunting task. Every startup needs to raise money at different stages to successfully operate and grow its business. It's important to have a good understanding of what you want to do with the money and how you will use it. It's also important to know your audience when fundraising. You need to be able to show potential investors that they will make money off of the investment.
A critical aspect that most startups should remember is that raising money is not just about covering your costs, but it should also serve as the platform for future growth.
There are many challenges that you have to go through before getting the money. The first challenge is finding the right investors. Investors are not always easy to find and you need to be able to convince them that your idea is worth their time and money.
The second challenge is convincing your investor that you have a good team and that they will be able to execute on the plan.
The third challenge is actually getting the investment from the investor, which can be tough because many investors are hesitant about giving out large sums of money without any guarantee of return.
The fourth challenge is actually making sure that the investor does not take too much control over your company, which can happen if they invest a lot of money into it.
Here are three different stages at which you will need to raise money for your startup and how to face the challenges at every stage.
1) Pre-Launch:
The first stage of raising money includes the pre-launch stage when you have to develop the product, market it, and create a solid team. Angel investors or business incubators can be a good way to raise funds at this stage, and your major is to avoid unnecessary expenses which increase the burn rate of your startup.
2) Post Launch Stage:
In the post-launch phase, the product has been launched in the market and investors need to see the performance of your business. Earn your investor's trust by sharing the lessons or key insights about customer behaviour.
3) Scaling Your Business:
Finally, the third stage of raising money is when you need to scale your startup. At this stage the startup has been successful and considered a safe investment, so more funding sources like venture capital funds will be willing to come on board.
Are you a founder looking for funding? This webinar will help you learn about all options!
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What any startup needs is funding. In a world where data is the new oil, every business is a data business. This means that developing the right data strategy, and positioning of data products is key in raising funding. On this open workshop, professor of entrepreneurship Dr. Walid Ghodbane will discuss topics like:
You can sign up to the webinar here.
Thinking of starting an AI startup or not sure what data you need for your new business?
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You can also check out the various services that The Tesseract Academy in raising money for your start-up here.
A s always feel free to get in touch or drop me a message if you have any questions!