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Raising Money? Here Are 3 Ways to Optimize Your Next Capital Raise for Success

Published on Jul 06, 2021 by Jon Alvarado

Raising money is a huge step for most businesses, especially for startups testing the waters and gauging receptivity. After all, raising money for startups is about more than just financial backing: that cash outlay can be accompanied by access to extensive resources, business know-how, and network growth — benefits a startup might not be able to access on its own. Optimize your capital raise using these tips:

     1. Don’t over-optimize

Keep your expectations in check and focus on the end goal. Too often, when startups raise money, they focus on price, the ideal investor, the amount they are raising, and how fast the process should be. Each of these can waste time and energy and divert your focus. Raising at high prices, for example, has nothing to do with the quality of the company, and no single investor is ever likely to be perfect. Obsessing about the amount of money you are raising, meanwhile, may have nothing to do with what you need.

     2. Nail your pitch

Pitching your startup is like speed dating — you need to look hot. Investors will likely make an instant decision based on your pitch — they don’t want to see your entire background, they don’t want to get to know you, and they don’t want to be your friend. You are either hot or not.

    3. Develop the right materials

Capital raising materials are meant to generate interest in your company and compel investors to take the next step. Ensure yours are in order: Pay careful attention to your executive summary, due diligence terms, financial model details, summary of key investment factors, and any legal documents that should be included.

For startups looking to make big moves, Deal Box can help. Based in San Diego, we are champions of investment packaging and startup funding.