http://onstartups.com/tabid/3339/bid/87711/6-Tips-To-Rapidly-Raise-Funding-on-Angel-List.aspx
*#1 Use video to tell your story **#2 Get commitments for endorsements early **#3 Prepare your email responses in advance **#4 Prepare an investor data sheet **#5 Rate your investor contacts *#6 Share the responsibility of raising capital Whilst there are certainly strong opinions on each (videos don't do so well for engineering-oriented plays) I'm going to expound on #5. The talk is all about product-market fit but what about investor-startup vision fit? Obviously nobody likes being on the short-end of a build to flip startup (unless deliberately so) so how does one match up the capital with the smarts? Whilst not exhaustive, some points to consider - investment horizon ... are people talking months (social media) or decades (cleantech) - risk appetite - (fad driven or carefully thought-out investment thesis) - activity v passive ... actually anyone who thinks they're going to be a passive investor in an early startup is probably thinking more like a consultant than an investor There are tricks one can adopt from the product world, one is the BANT score, Budget-Authority-Need-Timeframe. With the evolving rules on crowdinvesting (SEC expected to release US guidelines in early 2013) the rules limit the % of annual income that a professional investor can sink (or to put it bluntly ... should be prepared to lose). In Europe the rules are even tougher, to escape the Prospectus Directive, there's minimum threshold of 50k euro, now raise to 100k. So unless there's the pockets to survive the expected Raman noodle stage till MVP, it would only create stress for all. Authority is easier, but sometimes syndicates and decision/consensus forming can slow things down, especially for urgent cash calls (not likely if good planning). The need and timeframes can be negotiated. Keep in mind that some angels have a psychic reward element, they like helping out youngsters, or got a pet hobbyhorse or may want to reinforce another portfolio. Here only due dilligence and perhaps tapping into the SB network might save everyone time. Funding is like fishing ... make sure you don't land the whales (wails) whilst hunting for the right porpoise (purpose). Lawrence http://www.linkedin.com/in/drllau -- You received this message because you are subscribed to the Silicon Beach Australia mailing list. Vist http://siliconbeachaustralia.org for more Forum rules 1) No lurkers! It is expected that you introduce yourself. 2) No jobs postings. You can use http://siliconbeachaustralia.org/jobs To post to this group, send email to silicon-beach-australia@googlegroups.com To unsubscribe from this group, send email to silicon-beach-australia+unsubscr...@googlegroups.com For more options, visit this group at http://groups.google.com/group/silicon-beach-australia?hl=en?hl=en
