How to raise capital to boost my startup?

More and more startups are emerging globally with innovative ideas and in search of financing to be able to boost and grow in the market through investment rounds. To achieve this; it is not enough to have a good idea. Having a clear growth strategy and investment plan are the key elements to get the attention of investors.

When to raise capital?

Many entrepreneurs do not know when their startup can be prepared to be able to start pitching to investors Here’s a series of elements that you should consider to take that first step:

Financial model: It is ideal that you are clear about your business plan; how much money you require to reach your next milestone or set of milestones and get to profitability; use of funds; and exit potential or return of investment. The clearer you have your financial business model and the numbers of your startup; the better the advantage.

Team: Having either a big or a small team is paramount since much of a company’s success depends on a good work team.

Traction: Having sales; customers; references; strategic partners; even pilot tests with your target audience and research on how accepted your idea turns out to be is fundamental.

What do you need to raise investment?

Mavity has worked with more than 200 startups; which has helped us identify and learn about the most important elements and resources needed to raise capital. Here is a list of them:

Business model: You need to be very clear about what you are going to sell; the requirements and needs of the market; know your competitors; and have a competitive and strategic price.

If your startup is in an acceleration program; they will help you achieve a clear business plan and a go-to-market strategy; which will seek to improve the results of your business; aligning your strategies to the needs of the market; especially your target customer.

Target audience: These are people or companies that have specific needs and are willing to pay for your products or services. To know your target audience; you need to research and look for all the possible information; having clarity about demographic; psychographic; and behavioral data. When you have defined the target audience; identify your ICP (Ideal Customer Profile)since this summarizes the characteristics of your client; understanding the use; frequency; and satisfaction with your product or service. Finally; you must create a Buyer Persona; which is to create a fictitious character that is built from ethnography; with a psychological profile; which represents a group with similar behaviors.

The Pitch Deck is a brief presentation of the overview of your startup; which is supported by slides that give a more visual scope of your company to investors. The slides that support your pitch shouldn’t just have relevant content; they must generate visual impact and have a good design in order to attract the attention of investors. Remember that there is no second chance to make a good impression; this is why we recommend to leave the pitch deck design in professionals’ hands.

Consider having the following information on your pitch deck:

• Title
• Problem
• Solution
• Value proposition
• Market size
• Competitive analysis
• Business model
• Team
• Financial Projections
• Roadmap
• Ask

We recommend that the pitch is done in a maximum of 5 minutes (when done via Zoom or any other live video format); be very clear and concise; present your objectives; and include storytelling in your presentation to generate emotion and motivate investors to take that second meeting.

The Investor deck is a document that is sent through email and presented in meetings you will have with investors. This summarizes your business idea; and what you want them to perceive of your brand. In general; the Investor deck must contain all the information that will make the investor interested in your project. This type of deck has more written information since usually you are not pitching it; and is meant to be read by a person without any further explanation.

Consider having the following information on your Investor deck:

• Cover
• Problem
• Solution
• Value proposition
• Market size
• Competitive analysis
• Business model
• Traction and KPIs
• Team
• Financial Projections
• Roadmap
• Ask
• Contact details
  

Ideally; this presentation should contain no more than 15-20 slides.

According to Docsend; these are some of the most relevant figures related to that first contact of the investor with the Investor Deck.

· 220 seconds devotes an average investor to a deck.

· It takes an average investor 96 seconds to discard a deck.

· 18 average number of slides in an investment deck.

So make sure your Investor deck is clear; concise; and with a striking and attractive design.

One Pager; as its name says; is a one-page document; where you must summarize all of the above mentioned; in a much more detailed but summarized way. This document is key; and it is ideal that you include as much financial information as possible.

You should be very brief with the content and answer the key questions: What; how; who; and why. You should also keep in mind that this document is easy to read; and explains with brief concepts to make it easy to understand. Finally; make sure your design is clean. We recommend including images and colors to better communicate your content.

The One Pager is a great way to make a first impression of your business; is easy to ready and can be sent by SMS; WhatsApp; email; as a first glance of what you do. The idea is that this document creates interest so the investor will take the next step and open an Investor Deck or set a meeting with you.

To raise investment; you must be well prepared and have a sufficiently clear project so that it can support the business model you propose; the ideas must know how to sell them and to sell it well you need to have a good brand creation; a clear visual way to explain it and a positioning to acquire new users.

Mavity has helped more than 100 companies with their investment assets; getting to raise more than 100 million USD in their investment rounds.

If you are struggling with your pitch deck; investor deck; one-pager or fundraising assets design; at Mavity; we can help you!

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