Launching a startup might seem easier than ever. Over 50 startups managed to raise millions of dollars each in July alone. Yet, funding can be a tricky prospect. Expecting overnight success with your first round of fundraising might set you up for disappointment. You often have to take the conventional route to attracting VC money: Doing your homework.
There has to be a market for the product or service you plan to offer. Moreover, the revenue potential of your product offering should be strong, with exponential growth likely in the near future.
A few other factors can influence your chances of success in raising significant money in the first round. Start by picking an industry or niche that’s ‘hot’. Note that potential investors will look at five and even 10-year projections for marketplace growth. They have to make a decision based on a concept or an idea. Hence, they are more likely to follow the current trends.
The size of the market is another pertinent factor. Startups with a revenue potential of less than $100 million over five years have a small chance of securing funding. Your credibility as an entrepreneur also comes into the equation. You can get a partner on-board who has a track record of launching new businesses successfully. VCs will view you as less of a risk if you can show some credentials.
And it never hurts to get some feedback from your target audience, even if it means handing out free samples. Word of mouth is a very potent form of marketing today. Get favorable reviews from potential customers and you are good to go. Here is additional information to learn more about the steps you need to take to attract VC money for your startup.
FLETCH Creative announces the launch of FastStart for StartUps™ – The Atlanta metro area’s first branding and marketing package designed just for startups. It’s an essential business solution designed to help you attract customers and investors by looking and sounding from the get-go like the company you intend to be.