Fundraising takes time

Yes, it will take time!

Typically, early on in discussing the fundraising process with founders you will hear us say, “You have to kiss a lot of frogs,” implying it will be tough to find your ideal smart investor(s), princes or princesses. There may be the occasional outlier when a founder finds their perfect match quickly, by these events are few and far between. So expect to have to make 10s of pitches, not just a handful. 40 or 50 is not unusual.

If this makes your heart sink as a founder, there are silver linings. At every pitch you will learn, whether from insightful investor comments, from streamlining and rehearsing your pitch so it becomes second nature and allows your passion to shine through, and from new networking opportunities. Even if investors may not be the right match for you, they know other investors who might be and a surprising amount of investment in startups comes via referrals. Don’t be afraid to ask for these!

The bottom line as you work you way through the initial fundraising process is to recognize that it will take time and a lot of your effort. Just as very few people recognise their perfect personal partner match on first meeting, so finding and securing the right investors takes time. You will need to go through a number of meetings with each engaged investor to get them comfortable with your plans and projections, even before you negotiate deal terms.

So, when fundraising and pitching, think in months, not weeks and make sure you have enough money to support the business during the process.

Tips & tricks:

✅ Build relationships with investors: Even if an investor is not the right match for you, they may know someone who is, so make sure you cultivate good relationships along the pitching/fundraising journey. Also some investors may give you feedback on improvements needed, or it may not be the right time for them to make an investment. In these cases, do revisit the conversations at a later stage, as the improvements may have made you more investable or the timing may be better.

✅ Raise enough: We typically suggest working on raising enough for a 12-18 month runway, or you will spend all your time as a founder raising money, not growing the business.

✅ Don’t wing it: There are a lot of startups out there looking for support and money, so skimping on preparation is not smart. Investors tell us that 70-80% of early stage startups are not investor ready – make sure you are!

✅ But always have an elevator pitch handy: Be able to tell your startup’s story and hit the high points of why it’s unique, exciting and will succeed – in a minute or less. Without prompts!

We can help you get investor ready and raise funds from our network of investors. Applications for the next cohort of our proven foundation programme are open.