Fundraising for your startup in 2010 is going to be a challenge. Not as bad as 2009 – but not a lot better.
Here are some tips to help you get through the maze:
10. Wear a hard hat.
9. Have at least $£100,000 in annual revenues or the best free model since, er Twitter.
8. Write the clearest, best written business plan with a straight, believable path to profit.
7. Make sure you’re in a hot sector for the 2010′s and not one for the noughties.
6. Make sure your burn rate is low. Definitely less than $£200,000 per annum.
5. If you seek a seed round of financing do not try to raise more than $£250,000.
4. Meet 3 times as many prospective investors as usual and be good at targeting. In the good times, if your idea was cool and your investor targeting sound, then 1 in 3 presentations would lead to an investor writing a cheque – now it’s more like 1 in 10. Join investor/entrepreneur groups online.
3. Have the sexiest, most believable, most researched, most bullet proof investor presentation. If you’re at seed round not more than 20 slides. If at Series A not more than 15 slides.
2. Get press. Investors still believe it.
1. Have a contingency plan if you fail to close your fundraising (on time).
0. Be patient. Damned patient.
-1. Give your investors strict deadlines and create competition.
7/01/10
