So you are raising money for your startup. You have a product and a little traction — now you need to grow. Who do you talk to? How do you get the round closed as quickly as possible without screwing your long term prospects?
You don’t know what you don’t know. Let this article be your intro guide to fundraising. The right partners make all the difference.
“Diamonds are forever”
This is one of the most successful marketing campaigns of all time. De Beers (the evil diamond company from Blood Diamond) convinced women and the world that without a diamond, the marriage wouldn’t last — the man wasn’t serious.
You have to put your money where your mouth is, so to speak.
And startups are a bit like marriage. You are “stuck” together for life. And it can be awesome or awful — it depends on the partner. And since the average US marriage before divorce is 8 years, it equates very nicely to the startup-investor relationship.
I am not cynical enough to say you should spend as much time dating investors as seeing a significant other before getting hitched, but keep this in mind.
Remember, business partnerships are like marriage, without the sex… they aren’t always fun.
Sources of funding
Other than bootstrapping your business, friends and family money and loans or grants, there are 4 main sources of fuel for your startup: angels, VCs, angel groups and syndicates.
Hopefully are familiar with these four groups. If not, you really need this article.