Details of Materials and Documents You Need to Prepare to Fundraise for Your Startup
This article is written by Munira Hussein, a Contributor Author at Startup Istanbul.
The fundraising being a very crucial part of your startup, there are a number of materials necessary for the success of the fundraiser. There is need for your materials to be concise. This is because the investors or the recipients of your invites are probably busy people and have no time to read through a hundred-word document. Your value should therefore be captured in very few words. Capture their attention and arouse their interest in those few words.
First, prepare a convertible note. This varies with each business and company. You can find a template that suits yours. Some of the templates you can use include PandaDoc or the Biztree Doc among others. Set the terms in this initial stage so that you are comfortable with the outcome. Then prepare on what your company stands for and tie it into a paragraph that is sharable.
You will require a clear 1-2 paragraph blurb on the company. This includes an impeccable 10-12-page deck that investors can get and read. It should be specific, simple and tights. Capture the vision and the company, the team, product and market. Set your terms and finalize your convertible note and seal with great lawyers.
Forward the documents to your first degree relationships who are your closest networks. Then you can explore the second degree who are people within the locality or networks of your networks. In this process, find the best referrer from the people within your networks. If you have particular investors that you want to reach, research on their hangouts and friends and find a connection to get you to them.
Request for an introduction email from your referrer. In the email, be clear about who you’re reaching out to or the kind of investors you are looking for, what you are working on, why the particular investors you want are the right fit, quick sunnary of why the opportunity is equally important for them. Here, you can use facts and figures.
Send out the documents individually. You can use DocSend. This will help you track whether the document has been opened or not, what page the person reading spends more time on. This will mean that they have questions about the page or it has picked their interest. DocSend is also a great way to ensure that your documents are safeguarded from any unauthorized shares and forwarding.
Once you have sent out the documents, give your potential investors a period of about one week before sending a follow-up email. Ensure that your follow-up emails have values added to them. This means that you update them on the progress you have made so far with your fundraising plans and there are other investors that have come on board already, you can inform them. This will create interest and the fear of missing out. Once you have the attention and the feedback, prepare for the pitch.
Congratulations up to this point!