The Fundraising Process: Steps and Strategies to Raise Funding 💼
3 mins
Hey there! In this Loom, I'll be sharing some valuable insights on the fundraising process. Fundraising is a nine-month journey, and many people wonder where to start. The answer is that it's a parallel process, so let's dive into it. The first thing to remember is that the best businesses get funding, so keep your focus on that. Fundraising should be a function of your business, not your entire business. I'll guide you through the steps, starting with crafting a concise one-page document and outreach content. Quality over quantity is key when curating a target list of genuine investors in your sector. I'll also emphasize the importance of being honest with yourself and evaluating your outreach process. From there, we'll move on to building a full deck and finance model, ensuring you showcase your business model and current status. Remember to keep your deck to ten slides. Researching additional investors and tracking outcomes is the next step, followed by building a presence on LinkedIn and creating relevant content. Finally, I'll stress the importance of moving all these processes forward at the same speed to increase your chances of raising funding. So, let's get started and take your fundraising journey to the next level! 💪🚀
View Comments and ReplyTranscript
Show Transcript
Is a nine month process. A lot of the comments that I've had back to that is okay well what do I start on?
Do I need to be ready on month nine or on day one? And the answer is that it's a process it's parallel so let's jump into that a little bit more now.
First and most obvious thing to point out is the best businesses get funding so do not take your eyes off the ball.
Fundraising should become a function of your business not your entire business. Two, start by crafting something really concise a one page document and three hundred characters of outreach content.
This is a really good challenge to get it refined and focused the biggest problem with investor outreach is it's just.
Overwhelming spam to curate a target list. So let's focus on quality over quantity, identify and target genuine investors within your sector who may be interested in your business sounds easier than it is.
So stick to 10. Run a light outreach process and evaluation. And I say light by not spammy, you know, keep it very focused and real and honest and human.
And be honest in your own feedback on the process. Was it spammy? Was it overwhelming? Did people not even reply?
Use this and go into the next step which is building a full d*** and finance model. The final step is to build a full d*** and go into the next step which is building a full d*** and go into the next step.
Finance model should be a three year forecast, ensure that you're showing your business model how you actually make money and a good picture of where you are today.
So I like to see reality flowing through into this whirlwind success. Doing that gives a good example of how you can scale your business.
With the d*** keep it to ten slides don't go any further than that. Next step research some additional investors you've already been through your first list so we're going to need a new set of fifteen.
Track the outcomes this is email opens responses positive no's reasons for no's. Securing meetings is very difficult don't just presume that everyone has 30 minutes free every hour of every day.
To just chat to random people they don't so focus on the meaningful interactions keep people on their preferred channel of communication if they want to talk via whatsapp.
Talk on whatsapp if they want to have a call have a call but it's not really up to you to dictate that.
Next step build a presence on LinkedIn it's kind of like shouting in the middle of a rainforest no one's ever gonna hear you if you're invisible.
Build some content that tells the same story. You're telling in your outreach so you know write 10 sets of content that's gonna match the 300 characters that we wrote originally.
Also start to comment on your investors comment on the profiles be relevant. Engaging, you know, provide insight analysis contribution. Most people only repeat the steps of finding new investor and continue the outreach but they don't repeat the steps of finding new investor and continue the outreach
but you know if you move all of those processes forward at the same speed not just steps five and six which is the rinse and repeating investors you will raise funding.
I pretty much guarantee that's a fact. 99% of people don't bother though and they give up after a few weeks and blame the pandemic.
Transcript
Show Transcript
Is a nine month process. A lot of the comments that I've had back to that is okay well what do I start on?
Do I need to be ready on month nine or on day one? And the answer is that it's a process it's parallel so let's jump into that a little bit more now.
First and most obvious thing to point out is the best businesses get funding so do not take your eyes off the ball.
Fundraising should become a function of your business not your entire business. Two, start by crafting something really concise a one page document and three hundred characters of outreach content.
This is a really good challenge to get it refined and focused the biggest problem with investor outreach is it's just.
Overwhelming spam to curate a target list. So let's focus on quality over quantity, identify and target genuine investors within your sector who may be interested in your business sounds easier than it is.
So stick to 10. Run a light outreach process and evaluation. And I say light by not spammy, you know, keep it very focused and real and honest and human.
And be honest in your own feedback on the process. Was it spammy? Was it overwhelming? Did people not even reply?
Use this and go into the next step which is building a full d*** and finance model. The final step is to build a full d*** and go into the next step which is building a full d*** and go into the next step.
Finance model should be a three year forecast, ensure that you're showing your business model how you actually make money and a good picture of where you are today.
So I like to see reality flowing through into this whirlwind success. Doing that gives a good example of how you can scale your business.
With the d*** keep it to ten slides don't go any further than that. Next step research some additional investors you've already been through your first list so we're going to need a new set of fifteen.
Track the outcomes this is email opens responses positive no's reasons for no's. Securing meetings is very difficult don't just presume that everyone has 30 minutes free every hour of every day.
To just chat to random people they don't so focus on the meaningful interactions keep people on their preferred channel of communication if they want to talk via whatsapp.
Talk on whatsapp if they want to have a call have a call but it's not really up to you to dictate that.
Next step build a presence on LinkedIn it's kind of like shouting in the middle of a rainforest no one's ever gonna hear you if you're invisible.
Build some content that tells the same story. You're telling in your outreach so you know write 10 sets of content that's gonna match the 300 characters that we wrote originally.
Also start to comment on your investors comment on the profiles be relevant. Engaging, you know, provide insight analysis contribution. Most people only repeat the steps of finding new investor and continue the outreach but they don't repeat the steps of finding new investor and continue the outreach
but you know if you move all of those processes forward at the same speed not just steps five and six which is the rinse and repeating investors you will raise funding.
I pretty much guarantee that's a fact. 99% of people don't bother though and they give up after a few weeks and blame the pandemic.
More than 25 million people across 400,000 companies choose Loom
For Mac, Windows, iOS, and Android
My teammates and I love using Loom! It has saved us hundreds of hours by creating informative video tutorials instead of long emails or 1-on-1 trainings with customers.
Erica GoodellCustomer Success, Pearson
Loom creates an ongoing visual and audible experience across our business and enables our employees to feel part of a unified culture and company.
Tyson QuickCEO, Postclick
My new daily email habit. Begin writing an email. Get to the second paragraph and think 'what a time suck.' Record a Loom instead. Feel like 😎.
Kieran FlanaganVP of Marketing, HubSpot
Loom amplifies my communication with the team like nothing else has. It's a communication tool that should be in every executive's toolbox.
David OkuinevCo-CEO, Typeform
My teammates and I love using Loom! It has saved us hundreds of hours by creating informative video tutorials instead of long emails or 1-on-1 trainings with customers.
Erica GoodellCustomer Success, Pearson
Loom creates an ongoing visual and audible experience across our business and enables our employees to feel part of a unified culture and company.
Tyson QuickCEO, Postclick