Daniel Assouline, Upclick Cofounder – Fundraising Tips For Startups

One of the major routes for startups to get funds is to convince investors. Daniel Assouline, Upclick cofounder, with an abiding interest in entrepreneurship and the art of working with investors, offers his views on how businesses can raise funds more effectively. Businesses would need to perfect their pitch to convince investors that their business is viable. 

At the outset you must remember that funding is one of the biggest initial challenges for new businesses. It is a well known fact that less than 5% startups are successful. Many ventures fail before they can even start, just because they could not raise funds to turn their idea into something concrete. You would want to be counted among the minuscule startups that succeed, so you want to start with the first step, that of raising capital. Some of the best methods to convince investors are outlined below.

Have a solid reason for your request-

Do your homework well. You must know how much you will need in the initial phase. Take into account all expenses, rents, utilities, equipment, raw material, salaries, and so on. Also, do not ask for a sum that is too little, because then you will find it hard to run your business well. You would also want to avoid asking for excessively large amounts. 

Estimate when business breaks even-

You would need to estimate how long it would take for your business to break even. After that you would need to figure out how long before your first profit comes in, and how much. It is better to be conservative with these estimates, so that you are able to absorb the shocks if the business is slower than expected. Your investors would also want to know how long it would be before your venture returns a profit.

Go by facts and figures-

Do not hype your idea or business direction. Investors have plenty of experience in dealing with new business ideas. They have probably gone through dozens of business proposals before coming across yours. They are able to predict how viable your proposal is. Therefore, place facts and figures on the table and draw your conclusions. This, according to Daniel Assouline, Upclick cofounder, improves your chance of getting your proposal approved.