Need Tips For Raising Capital? Try To Avoid These Fundraising Mistakes

1
Need Tips For Raising Capital? Try To Avoid These
Fundraising Mistakes
2

• Very often, entrepreneurs scroll through the web
  in search of tips for raising capital for their
  startup. No doubt, there are a lot of things you
  can learn about an early stage capital raising
  campaign and but what is more important is to
  learn from mistakes made by others. Often,
  despite having all other things in proper places,
  an entrepreneur may fail to raise the Dollars
  just because of a single mistake.
• Here's a list of some of the most common
  mistakes done by first-time entrepreneurs (at
  times, even by those who already have experience
  in capital raising). Though you can never really
  count a definite number of mistakes as every
  investor is different in his/her preferences, you
  can still avoid the following mistakes to be on a
  safer side.

3
Asking More Or Less Than What You
Need Determining how much capital you need is
nothing less than a fiery trail. You have to
remember that raising a seed stage startup
requires huge capital and your demand for the
capital should be so balanced that neither you
ask for too much money nor you go broke during a
crisis situation by raising too less. Make sure
you raise an amount that is required to meet your
milestones and timelines. If you ask something
unrealistically low, you will simply welcome a
disaster for you by proving to the VCs that you
do not have a proper understanding of what it
takes to grow a business. So be realistic in your
demand even if the amount is too high. Making
Unrealistic Promises Investors would love to
invest in a startup with set goals and timelines.
But to demonstrate unrealistic milestones just
for the sake of convincing the investors is again
not a good idea. They will definitely like to see
that you are able to deliver what others think is
impossible but better try to ensure that it
something that you will really be able to
accomplish. No need to put on a superman's mask
as it will be embarrassing if it is pulled off.
4
Showing Unrealistic Demand For Your Deal Raising
capital from an investor is also the initiation
of a long-term association with the investor who
is going to be with you throughout the journey,
which should be purely based on trust. There is
no place for any dishonesty and if you show that,
it is only you who is going to suffer later. Like
many other entrepreneurs, if you too have a
tendency to show that there are many other
investors who are dying to invest in your deal,
make sure it is genuine. Otherwise, it can be
humiliating on your part to cling to the
investors' door waiting for their call even after
a month. Hiring An Agent To Present The
Pitch Being an entrepreneur looking to raise
capital, each and every move of yours will be
brought under the scanner. If you hire an agent
to present your first pitch, it indicates that
you do not have the skill and efficiency to
present it on your own. It can be an instant turn
off for any investor so better ignore the idea
and do it on your own.
5
Keeping Member In The Team Who Do Not Add Any
Value It is very essential for a startup to have
a team where each and every member is playing a
significant contribution in their respective
fields. It is quite common among entrepreneurs to
present a team comprising of their friends and
family members which is absolutely fine provided
the members are highly qualified and have proper
business sense to help you grow the business.
Otherwise, it doesn't make any sense investing in
a member who has least contribution to
make. There are many such mistakes that can
simply ruin all your efforts and encourage the
investors to invest in some other venture. Try to
ensure that you do not disappoint your potential
financers at any cost and consider it as the most
important tip whenever you approach your next
investor
6
GetVantage Tech Pvt. Ltd. 116, B.U. Bhavan,
SewreeMumbai, 400015 Kindly refer GetVantage at
the below link getvantage.co