3 Networking Skills that Can Ease Fundraising

Fundraising may not be the most fun task, even for serial investors. Some directly say that they would rather have their co-founder do the fundraising round while they stick with running the business. But if you are a founder, it is something you will have to do at some point. One skill that can make this journey smoother for you is networking.

If you started a business, then retreated into your cocoon to run the business, in the hopes that someday, you’ll simply come out and look for someone to inject funds into your business, then you might need to prepare yourself for the rude brush with reality. Ahead of your fundraising venture, you should be interacting and networking with people in your space, as well as potential investors. If you are looking to attract investments from an angel group, for instance, it helps if you have some mutual connection or at least know someone within the group. Investors are aware that 50% of startups would have completely shut down within 5 years of raising funds, so they want to be double sure before investing.

Attending relevant events

Building a startup from scratch can be time-consuming and it can be draining, but if you cannot even find time to attend such events, then you need to reevaluate what you are doing. Yes, you want to build a solid startup right from the early stage. BUT, you also don’t want to go into fundraising to find that none of the names in your sector even knows you.

The persons you are building a connection with may not necessarily have the fund to invest. But you could approach an investor, who would call him to ask if he has ever heard about X person or X business. It would be a shame if your potential investor cannot even find one person who can vouch to know you and your business.

A captivating introduction to your business

Some people attend events and after introducing their name, they just introduce their business shoddily. “I am trying to start a small tech business” or “I have this small business I am trying to …”

This is wrong. No matter what stage your business is in, you should never be the one to describe it as small. You never know who could be listening. When you are in the company of others, introduce your business in the most captivating way possible. Have a 30-second pitch that covers what your business is about, what problem you are trying to solve, why you are passionate about it, and where you hope to take the business to. If you need to rehearse it after writing it down, do so and perfect it before using it.

Just 30 seconds of talking about your business should be sufficient to catch the interest of your listener in what you do. Always have your elevator pitch ready. Make it memorable. People hear a lot of introductions and semi-pitches. Yours should be one of the few they don’t forget. If handled right, you can find someone who would tell you to contact him or her anytime you are looking to expand or raise funds. It can sound something like “I know someone who loves investing in businesses like yours. Please inform me whenever you decide to raise funds or expand into other states”.

Be intentional with your business card

Do not be one of those who think a business card is just for giving out your contact details. Your business card can tell a lot about your business. That’s why it is a business card and not a contact card. One face of your business card should have bullet points about your business, just like an extension of what you have conveyed in your 30 seconds power pitch.

Include your contact details as expected. For the web address, you should have the link to an investor-oriented landing page, in addition to your general website. Such a landing page should be targeted at giving a deeper insight to intending investors, and do not refrain from crunching the numbers on this page. The person you give the card to, may not be an investor but could pass it on to one.