The Valuation canvas is a nice easy way for investors and entrepreneurs to value a startup using four well known valuation tools. It empowers investors to check the valuation of a startup and avoid overpaying and hurting their possible investment returns. It also brings some simple rigor to the often dark arts of startup investing and valuations. You can find this resource HERE.
By Matthew Kingsford
In an increasingly populated ecosystem, entrepreneurs still face many challenges when starting a new business, some of which can cause loss of profit, and even bankruptcy. With any new business venture, there is an element of risk involved and a lot of thought needs to be given to the type of business you plan to start. Why will people part with their money for the service you prodive? What's your target demographic, and do you have a unique sellig point (USP)? This will put you ahead of the competition.
Investors are very time poor, and this means as a founder looking to raise capital or secure funding for your startup or small business, it’s imperative to grab their entire attention (and hold it!) while you tell your story. And what better way to do this, than with a video?
Pitching to investors during the fundraising stage can be exceptionally nerve-wracking. After all, the entire fate of your business idea or product is in the hands of investors whom you need to impress and build rapport with. Many first time entrepreneurs make amateurish mistakes when pitching to investors, and most of these mistakes are easily avoided with a little advance planning, research, and forethought. Here are four of our favorite tips for pitching to investors in a way that will bring the outside capital you need while helping you to avoid common pitfalls:
Every startup business faces a unique challenge when raising investment capital: how much money does the company need to advance its operations and to achieve enough momentum to develop a viable, ongoing business? Not enough money will starve the business, but too much will dilute the founders’ equity and minimize the chance of a bigger payout at a later date. Moreover, the startup may need to take preliminary steps to position itself for better funding and to attract the right type of investors.
As an entrepreneur looking for startup capital and advice, it's a good idea to stay connected to as many experts as possible. One way to ensure you have a good handle on all of the venture capital opportunities available to you is to keep up-to-date with angel investor culture. Reading angel investor blogs is a great way to do this, while also gaining valuable new business insights that can help your startup succeed.
When scaling up a high growth business there are a series of potential funding rounds required.
These are rounds that a business may go through to raise capital (money) from investors, which will help them grow and expand.
Let’s start with a caveat that I’m not advocating anyone make a startup investment based on a valuation you’d do in only 10 seconds. Not for one second! But you might be able ascertain whether the valuation a startup is pitching you is in the right ballpark that fast.
There is a lot of confusion by both Startup founders and investors about the use of a Pitch Deck. As an entrepreneur seeking to raise capital from investors there is no shortage of conflicting advice you may receive as to the who, what, when, where, how.