Prepare Yourself for "Fundraising" in the Early Stages of Startup

In the process of getting fundraising, there are several things that must be prepared by the startup. Some of them relate to startup readiness to be "assisted" by investors. Still in the basics writing series fundraising, this article will complement the previous article.

Ready before deciding

Fundraising actually does not guarantee the success of a startup. But with fundraising many startups can finally grow and develop. What needs to be understood, the process fundraising does not always bring startups in a positive direction. It could be that when it decides to get funding, the startup does not even develop because problems are found in the funding process.

To avoid this, before deciding to seek startup funding, you must first know the direction and purpose. Including what needs must be met after obtaining funding. This clarity of purpose can also be a plus when facing investors.

In addition to the reasons and objectives for obtaining funding, the question of when and how much to raise must also be included in the calculation. Both are important, especially about how much money you want to get. This relates to the share and also the offers offered to startups.

Questions such as "Do you need funding for the next stage?", "How much funding should be raised?", and "What is offered to investors?" must be answered clearly before facing investors. These questions are part of the process of strengthening one's self founder before deciding to get funding.

As a business organization, it would be better if the startup also cares about the legality of the organization or company. Legality will also play an important role in the process of getting funding, because with legality the startup that is run can really be assessed as a company or business, not just a project. Although it is possible there are investors who are interested in projects with brilliant ideas and potential. So feel free to consult or find out about how startups can get legal legality and the like.

Other elements that are often taken into consideration are competition, business model, and team members. The team consists of people who are competent with track record positive will provide more value in the eyes of potential investors. For that team building is included in the preparation process before deciding to fundraising.

Understanding investors

One sentence that is often cited from many sources regarding funding tips is understanding investors. Starting from understanding the background of investors to what investors really want. Besides being able to determine what kind of startup it will take next, it is also important to know what investors want.

For this one thing, the founder and maybe other ranks need an active role to do this research about the investors who are expected to invest or at least those who are suitable for the business so that later it can have a positive impact. How is their investment portfolio, how progress startups in their portfolio, and some other backgrounds to look out for.

Understanding investors is not only about background, but also about what they want to get out of the investment they provide. After all processes fundraising Once completed, the next task is to bring the startup to growth, including meeting the expectations of investors. That's why it's important to be selective in choosing investors, while being honest from the start about the startup's plans, figures, and current position. The size must be appropriate, while the plan must run smoothly to meet expectations.

- Source: YCombinator, Entrepreneur