The Internet has fundamentally changed the ways in which startups receive funding these days. In many ways, it’s much easier to connect with investors that you want to work with, but on the other hand, it’s much more difficult to secure funding because of the massive amount of competition in the marketplace. Thus, for early-stage startups, it’s incredibly important to hone in on your product or service and perfect your pitch if you want to be one of the few startups that succeeds.
In a recent interview from Founders Space in San Francisco, California, Murray Newlands interviews Adam Boyden from August Capital about how startups can ensure funding and generate investments from the people that they truly want to work with.
To find out more, watch the full interview below:
These are the key takeaways from the video:
- In the interview, Boyden shares some great tips for startups who are looking to get funding. First, he explains, you have to have an idea that holds water and is worth an investment. Second, Boyden says you need to have an introduction to a person or company that has the money to invest in your business. Boyden claims that without an introduction, investors aren’t likely to even read your idea, let alone invest their money in your business.
- After you’ve developed a quality product or service and been introduced to some investors, Boyden says that you need to build a relationship with those investors and prove to them that your company is progressing and that it shows promise in terms of growth and generating revenue. Showing investors that you have customers or users and that you have a deep understanding of how to monetize them will only increase your chances of receiving funding because investors want to see that you know what you’re doing and how to generate large profits from your business.
- Because the barriers to entry are lower now than in the past in regards to tech startups, Boyden says that investors are now looking at different aspects of businesses and considering a number of different factors before deciding to invest. He says that investors want to see that you understand your unit economics, who your competition is and what they’re doing, and whether or not you’ve been able to hire top-tier talent to help your company grow.
If you have any questions after watching the video, please leave them in the comments below!
To find out more about August Capital, visit its website at augustcap.com.