Think you need startup capital for your next business idea? Here’s what you need to know…
Choosing to launch your own startup business is one of the most exciting things you can do in life. It can be one of the most valuable things you can do with your life. It can also be one of the toughest.
Especially when it comes to raising startup capital. Before you run out there to ask for money for your big idea or give up on landing that Venture Capital money, here what you must know.
Why You Need Startup Capital
Maybe you are already determined to raise big rounds of money for your startup before you’ve even finished your research. Or maybe you think you don’t need it, but it’s just smart to know about it.
The truth is that your venture is probably going to need more money than you think. Lack of it is the number one reason that at least 90% of startup businesses fail.
Yet, you might also need a lot less for something than you think. The reasons you should really be raising capital may be very different than you have in mind right now.
Businesses cost money to start and run. They just do. This doesn’t have to be your money or a lot of money, but there will be real costs.
Even at the most basic, this means incorporating your business, website domain names, hiring an assistant, funding the opening of a business bank account, internet connection, devices to work on, and some legal and accounting help, as well as marketing. A small budget for coffee and ramen to keep you alive and fueled wouldn’t hurt either.
Smart and experienced entrepreneurs know one thing well that outsiders and aspiring new entrepreneurs typically don’t. That is fundraising for startup capitañ is a lot less about getting the money, than everything else that the fundraising process can do for you.
If this has you scratching your head, then subscribing to the Dealmakers Podcast and checking out this fundraising training should be your next immediate steps after finishing reading this.
Money aside, some of the best reasons to, and benefits of fundraising include:
- Gaining visibility
- Creating a buzz about your brand
- Increasing your credibility
- Making powerful and valuable new connections
- Gaining important backers who are invested in your success
- Rocketing your ability to attract and recruit the best talent
- Adding value to your company
- Securing the best possible advisors and partners in growing your business
- Attracting early users
- Putting potential acquirers on notice that they should be connecting and following
- Facilitating speed, scale and the full potential of your business
These are reasons that can make startup fundraising a very smart move, even if you don’t think you need the cash.
See How I Can Help You With Your Fundraising Efforts
- Fundraising Process : get guidance from A to Z.
- Materials : our team creates epic pitch decks and financial models
- Investor Access : connect with the right investors for your business and close them