Here’s how to secure your next source of capital.
You’re a tech startup founder and the numbers are tight. Sound familiar? Let’s be real here. We know that you know that business isn’t easy—especially when it comes to fundraising. So here’s the inside track; three simple steps to get the proper funding your business needs to grow.
Know what your proper funding looks like
Capital comes in many different forms. It could be VC, angel investment, bridge financing, seed, or Series A, just to name a few. Understanding the pros and cons of each financial avenue means knowing how to make the right choice.
Before you put your pitch deck together, take time to consider your financial options and weigh up what’s right for your startup—focusing on what you need, rather than what you want. Sounds simple, right? Maybe, but effective and proper funding is built on hard evidence and considered scaling over potential overreach.
With a defined idea of what your capital should look like, it’s time to tailor your deck with data.
Start with a data-driven pitch
Okay, you’ve nailed down the type of capital you need to raise. Investors are lined up. It’s time to start pitching.
Your pitch deck is absolutely vital. Why? Because, generally speaking, investors will only go for one percent of all pitches they receive. Yes, it sounds scary and the entire process can be disheartening—you’ve probably already been there or are experiencing it right now. This is why using the right tools and standing out from the crowd is so important.
You can break a solid pitch into three data-driven elements: cohort analysis, leveraging balance sheet assets, and forecasting.
Cohort analysis. To engage your customers, you must know your customers. Cohort analysis studies user behavior to demonstrate their activity over time. Knowing your audience also means you know how to service them correctly. The relevance? You can present this data to investors and statistically prove where your profit is coming from. Proving profitability builds confidence. You’re investable, you’re growing, and your tech startup is an opportunity that just can’t be passed by.
Leveraging balance sheet assets. Trust us, it’s not as difficult as it sounds. Leveraging balance sheet assets is all about showcasing your success. Think less sacrificing stock for equity, more proof that you’re resilient, investable, and going places. A clean balance sheet highlights your inventory and liabilities, while any agreed contracts back up your figures—even when performance is down. Investor confidence comes from the numbers, just make sure those numbers are right.
Forecasting. Pitches fall down on forecasting. It’s that simple. Successful forecasting is built on your startup’s outlook and strategy. Know your success. Double down on cash flow—your business’ value is defined by it. Set clear goals, project accordingly, and prove to everyone in the room you’re the next best thing.
Last, but by no means least, make sure you know exactly where your proper funding is going.
Allocate your proper funding precisely
Fundraising, pitching, and planning go hand in hand. Right source of capital? Tick. Right investors? Tick. What’s next? Well, no doubt you’ve already got a plan in place to allocate your proper funding within the business’ overall operations—but you’re much more likely to be successful if you know exactly how much you need and why. Every dollar counts.
Break your numbers down into individual strategies, each with an end goal that contributes to the company’s overall value, objectives, and profitability. The more detail you present, the easier it is to land that proper funding—but there is another way.
One platform, countless opportunities
At Diadem Capital, our digital platform connects founders with a wealth of approved investors. We only make introductions based on quantifiable data; creating opportunities that go beyond traditional deal flows.
Sign up today and secure your next proper funding round with us!