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While these investors are all different in terms of how they do it, all investors are just people with a common fear: underperforming.
To overcome this primal fear, investors need comfort.
How do you give investors comfort early on in the process so they invest?
You're not really raising money if you're doing it casually.
If you're not keeping in contact with your investors, they'll question your commitment.
If you're not putting your investors to work, they'll lose the inclination to help.
Don't go out for funding too early or you'll have to prove more faster.
Don't wait too long to get funding or the walls will be closing in.
Bigfoot has a scoped-down list. If your list is too big, it's unfocused and your investors will question your targeting ability. Target around 30 investors.
If your investor list is too small (like 2 people), you need to broaden your scope.
If your investment window is too small, you'll lose steam.
If you overestimate your value, you'll shrink your market and turn groups off.
Overoptimizing feels like death by a thousand cuts.
If you're constantly renegotiating, good faith goes down the drain.
If you're overemphasizing edge cases, your judgement will be called into question.
If you can't get comfortable, your investors will start doubting their investment late in the game.
It’s easy to jeopardize future capital raises
If you only do what's comfortable, you'll get lazy and pay less attention. If you lock yourself by taking financing, you reduce optionality of taking future capital.
Raising capital is basically sales. If sales isn’t your thing, find help.
You have processes for other parts of your business, so have one here.
Investors are skeptical. Use the process to reduce their doubt.
I'm sending out a beautiful PDF eBook of notes from every MicroConf 2018 Starter and Growth talk – both Speaker and Attendee. Want a copy?