Around 90% of startups have witnessed in the infancy stage due to the lack of apt selection of ideas, plans, team, or other factors. This explains only 10% of them survive the liquidity of the market by convincing the industry of their business uniqueness.
The main catch is to captivate investors or fundraising companies; let’s say SGH Capital which offers entrepreneurs favorable fund stages.
Either you are onto private investors, loans, or crowdfunding. Choosing the right investor is equivalent to choosing the right spouse because it’s about your business’s marriage life.
The list of private investors includes angel investors and venture capitalists. For getting along with the right investor let’s understand their functionalities individually.
Angel investors help you sustain the seed stage by investing huge capital at the very beginning of your startup. On the basis of huge ROI. So come up with an airtight business model.
Venture capitalists are there to help you out in facing unpredictable financial business risks via investing in millions. VCs do not invest their own assets rather they build up a fund sharing system where potential investors can buy shares and directly fund the desired startup.
Ultimately the choice is yours
Small Startup Loans
Application for small business loans is yet another wise approach to be taken for your startups. The advantage of minimal interest rates, they aid borrowers with essential pieces of training, mentor workshops, and even grasp investing opportunities within the relevant industry.
Hence changing financial gears for stable financial growth of startups with solid backups.
Taglines & Elevator Pitch
What’s seen is sold is one of the most renowned phrase to define the significance of appealing startup ideas for grabbing the most of funding investors. The better you are at delivering and convincing others upon your business model the greater the chances become of attaining mass investors.
Pro Investor Tip; be confidently precise and clear about your ideas
Where pitch is the film your business plan acts as the screenplay. Do not go beyond the limitations of formalness as lengthy business plans are not only the epitome of professionalism.
Disrespecting the need for a business plan by believing in the myth of investors paying lesser attention to the business pan will literally be the nip in the bud for raising your startup’s initial funding capital.
Company’s like SGH capital holds the tendency of rejecting the business without reading the plan but won’t ingest in a business without giving it a thorough read.
Lastly, peer to peer funding strategy. Make sure you are not overburdening them with your ideas rather share the business model with a formal presentation inclusive of graphs and images.
Conversely, ask them to share your startup model with the ones interested in raising capital for it and wait if they volunteer themself or do the chore of spreading your words with legitimate genuineness.
Though peers can make you believe it in an informal form of funding still be confidential and do the paperwork inclusive of the return rate and profitability one can attain after investing in your startup.
For successfully sustainable investors, relationships are honest, dedicated, wise and the man of your words!