what do you plan to raise funding round, but without success.in fact, not only you a person have such experience.many founders find they need to meet with many investors, therefore, it is very difficult to raise money for start-ups really and will spend much more time than you think.
venture capitalists early learned to refuse to others.because, there is a limit to the amount of their investment, and they need to find a reason to refuse.especially recently, venture investors more cautious than in previous years.
although these challenges are inevitable, but for some gen companies rejected may even is a kind of useful experience.from my experience as a gen enterprise consultant, here are seven steps guide, let you take setbacks as push you forward.
most venture capitalists and angel investors are very polite, at least in front of you, because they don't want to have a reputation is not willing to invest and it is difficult to cooperation.so, after being rejected the first thing you need to do is to ask why.they give reason for refused to investment is likely to be useful, it is possible that has nothing to do with you.
but don't just ask you to select investors, other channels to get feedback from the network can be very useful.why investors eventually rejected, it may remind you need to consider the business model, target list of investors, or deal with their marketing methods.
2.look at your business model
clearly, investors are looking for companies with huge growth potential.as an entrepreneur and ceo of a startup, you already know, you need to have a thorough understanding of your target market size and growth potential, learn the user's needs and pain points.also, you know, you need real-time control current and potential competition.
refuse is a kind of useful signal, it let you know what you understand is not deep enough in these areas.results show that, although your business model is what you think is reasonable, but rejected investment represents a certain signs, that is it worth you to reflect on a few times.
3.adjust your product positioning
at times, investors are concerned about your niche market is too narrow.sometimes, they think the target market is too broad.however, investors and angel investors want to invest in companies that potentially large and fast-growing market.in other words, you how to predict and plan the market capitalization, this is very important.
4.review your financing market materials
as contact investors of entrepreneurs, these files are trading the idiomatic means:
1.convincing the elevator lobby
2.an action plan for concise
3.show the powerful business model business plan
4.with 10 to 30 times in return on investment potential financial forecast
if investors rejected you, you may need to revisit the material, and see how they can improve.after all, you are telling your startup's future success.denied that story can develop better!
5.choose a different investors
as with any sales process, you need to create a target list, and then execute it.savvy investors in your target vertical market of professional knowledge, or also with exquisite technical experience in the area of your product.
if investors so far you are in contact, not very accord with, you may need to make a new list.if you choose to investors refused to you, probably because you don't have the sort of information they are looking for.you want to have investors can provide you with the idea of investment, but your ideas need to be detailed enough, because they will know more than the others in your industry or technology.
you may not be sure what kind of investors.relative to the seed round stage or even a round of funding, venture capitalists are more likely to invest in the growth stage of the company.
after a period of time, you want to communicate with investors, prove that you have completed some goals.better able to verify your business model of key performance indicators(kpis)?what did you do to reduce the technology and market risk?
when meet investors again, ask yourself how you can create more of the above such records, to show your progress, you may need to show more.so be patient and strategic thinking, you still have a lot of opportunity.