Early Bird Matters2

Fundraising 101


Managing to raise capital is rarely easy, and can prove to be an uphill battle, even at the best of times. This is the case even though you have a stellar idea and your business is performing in the marketplace. 

The fundraising process itself is a time-consuming endeavour and consists of a plethora of moving parts that need to be expertly executed in order to even get your foot in the proverbial door. 

Whether you are fundraising for your Seed or Series B round, the process and steps are fairly similar – you might just have more practice by the end. 

Your activities during your fundraising experience will range from storytelling to creating and developing materials, to sourcing and networking with investors, negotiating term sheets, to setting up data rooms – just to mention a few.

Let’s start by having a look at some things you should know when starting off your fundraising journey.

Company’s Fundraising Stages

Well, if you are thinking about fundraising it would be an excellent first step to develop a clear understanding of what stage you’re in. 

Have any institutional investors invested in your venture yet? Are you the only one who has put in money?

Being bootstrapped means that until this stage the venture has been funded by the founders only. 

Once you get your operations off the ground and have surpassed the concept stage of your venture you are entering the Seed Stage. 

Now, you are most likely looking for money from family and friends and business angels, maybe even some VCs.

If you have managed to show your business model is working and you can demonstrate that you have the potential to grow and generate further revenues, one might say that you reached the stage for a Series A fundraising, which is followed by Series B, Series C, etc. – pretty self-explanatory.

Depending on your exit strategy for your venture, you might end up with an IPO 😉

We will be going into more detail about the different stages in our next article, so watch this space.


So, now that you understand which stage you are in, it is easier to understand your options of whom to fundraise money from. 

Investors are not the same, they have different criteria, different ticket sizes and might even only invest at a specific stage and can offer you different kinds of support.

Early Bird Matters2

(Fools) Family & Friends

Most of the time, family and friends are the first people to invest in your venture after yourself. 

These are people who know you and believe in you and what you are working on. 

They should be easier to persuade to invest in you rather than a stranger, but might not have the deepest pockets.

What about these strangers? They might be Fools, or they might be angels…

Business Angels (BAs)

They are independent individuals who decide to invest in the business because they believe in the founder/-s and the venture. 

BAs can be passive investors who only supply capital, however, some BAs really want to get involved and are able to help with strategic advice or with their network.

 An early-stage startup can really benefit from the BA’s experience and support, especially if the BA is and has been active in the same industry that the venture is in.

Accelerators & Incubators

Incubators help you with expert advice and can be able to provide you with office space.

They are a good fit for early-stage startups – even when you are ‘only’ at the idea stage – and the environment is all about collaborative support and a bit more laid-back in order to give you space for creativity.

Accelerators can help you with mentorship, capital, and connections to investors and potential business partners. 

The majority of accelerators do require the startup to have a minimum viable product (MVP) in some way and after acceptance, the startups go through an intense programme focusing on scaling the business.

Public Crowds (Crowdfunding Campaigns)

You should never underestimate an investor – your average person times a 100 or even 1000. Using a crowdfunding platform to fundraise can be very beneficial in reaching a huge number of potential investors who might even end up being end-users of your product.

Crowdfunding is greatly dependent on marketing, so make sure that you have this part down to a tee.

Side note: Make sure that you do have all the individual investors invest via an SPV (special purpose vehicle) otherwise you might end up with hundreds/thousands of individuals on your CapTable 😱

Venture Capital (VC)

Venture Capital focuses on emerging companies that are looking for significant funds for the first time.

If a VC decides to invest in you, it means that you have shown to have a great management team, have a big market opportunity, have an interesting pitch deck, have achieved positive early traction, and stand out from your competitors. 

VCs tend to specialise in industries or if open to different sectors have teams focusing on their specialisation. 

As VCs might have different funds, you should understand what criteria they have as some might focus on Series B only while others could even invest at the seed stage already. 

Pick the right VC for you, people you can openly communicate with and feel comfortable sharing bad news with (trust us, this will happen), and a VC that respects your time as you can’t afford to waste it on things that slow you down.

Private Equity (PE)

Private Equity tends to fund bigger, more established companies that are looking for a capital infusion or sometimes even the possibility for the founders to transfer some of their shares or a total buyout. 

So here we are looking at higher ticket sizes and let’s be frank: If you are currently looking at a PE investor you most probably will not be reading this article right now about fundraising 101s 😉

But if instead that’s exactly what you are doing, well… why don’t you contact us?

Early Bird Matters2


Website's Newsletter Form
Scary Halloween Matters2

5 Spooky Innovations That Monetise Death

To celebrate the spooky season - but also because we just like the weird and creepy things - we thought it would be great to look into some "horrific" startups and companies…
Poker Matters2

9 Negotiating Principles for Investment Success

What are the underlying principles that you should be using in a negotiation? It doesn’t matter whether you’re the one looking to make the investments or the business looking to attract investors…
Spock Meme Matters2 ORIGINAL

A Call For Logical Thinking

REDISCOVER SCIENCE Please let’s start behaving rationally, people. The strain that this coronavirus pandemic is having on our social behaviour, coupled with the velocity and accessibility of social media is fuelling a…
Karma Matters2

Karma Works

Everybody has a desire to accrue wealth – we all want more money for our families and for ourselves. But the vast majority of us...
a good amount of stress Matters2

Good Stress Vs Bad Stress

Honestly, not all stress is bad! Feeling stressed can be good for you in small doses... There is such a thing as good stress (which is also known as eustress) and...
Red Flag Matters2

Investment scams: five red flags to look for

The digital age has made it much easier for cowboys to create convincing profiles online to extort young businesses... but with a good understanding of some common red flags, you can be…
boat wheel matters2

Business Valuation For Beginners

In order for an investor to gauge how much they are willing to invest in any business, no matter the stage, they would need to know what the market value is of…
Cake Matters2

Slicing The Pie

When it comes to your start-up, you want to ensure complete equality of equity. Finances are of the utmost importance, and it's essential you find a way of fairly and impartially determining…
Solo Founders Matters2

Solo Founders: Myths and Legends

When you’re setting out into the world of business, some widely accepted wisdom states that you need a business partner. After all, starting a company is tough, and you need all the…
Nesta Pattern

Our Futures – The Game

‘Our Future’ is a game to imagine new ways to involve people in thinking about the future. It was created by Nesta, together with John Sweeney and Jose Ramos, to address 21st…
Pivot Matters2

Lean Startups & Pivots

The lean startup method aims to find and develop a business or product for which there is demand. You start with your idea, then you test and develop from the feedback you…


Website's Newsletter Form

Leave a Reply

Your email address will not be published.Required fields are marked *