Sooner or later, every start-up company finds itself in a situation where more capital is needed for the further development of the company. In the first quarter of 2019, CHF 341M has already been invested in Swiss start-ups. From our own experience we share the most important points a start-up should consider when it comes to attracting investors and closing a successful financing round.
Addressing suitable investors correctly
There are a large number of venture capital firms and their focus is different. Each investor has its own investment criteria. It is therefore essential to address the characteristics and needs correctly, to identify your target audience correctly and to respond to their needs in a targeted manner. In which areas and industries do you invest? How large are the investments? In which phases are investments made? Who is the right contact person?
"A decisive factor in every financing round is preparation. This should start early enough. Before approaching investors, one should know the conditions, so that a more targeted approach can be taken." – Roger Meier, Roomz
Network and Relations
The „Cold Calling“ with investors is hard and often does not lead to the desired success. Recognised networks can be used to increase the level of awareness. The common points of contact help to get into the field of vision of investors and leave a first impression. This works best through qualitative recommendations. During previous financing rounds, an ecosystem has often already been established which can be actively used again. Most key stakeholders are happy to help, increase the reach and build trust, especially if they are well-known industry experts.
Partnership before Brand
Obtaining funding is one side of the coin, gaining a valuable partner is the other. Fundraising is about more than just capital. It is about choosing the right investor who actively helps to achieve the goals set. A due diligence of potential investors helps to identify the really suitable investors.
After fundraising is before fundraising. If the contact was successful, it is important to keep the promise and to maintain a regular exchange. Investors want to be sure that agreed goals are achieved. The trust that has been built up helps in the successful further development and also in further financing rounds.
"It is important to transfer the lessons and experience gained from each completed financing round to the next financing round and to start the next financing round early, i.e. without time pressure". – Benno Marbach, Guuru