Knowing Your Start Up Funding Stage
by Startacus Admin
Some handy tricks and hints to aid you in your efforts if you are looking for funding for your startup, written by the team at Innovate UK.
"Bringing together the funds you need for your start-up can seem like a near-impossible feat.
If approached the wrong way, it can be an immensely frustrating and stressful experience, no matter where in the funding cycle you currently sit.
The longevity of any business relies on long-term, serious investment. To expand and develop in meaningful ways, you’ll need to prioritise attracting investors and bringing in that much needed money.
So, in order to help you reach your goals, we’ve compiled together a guide of tricks and hints to aid you in your efforts.
Looking for new approaches when it comes to investors, or simply after some fresh ideas for your business? Either way, make sure to read on for our guide to start up funding.
Startup funding stages - Innovate UK
Understand Your Position in the Funding Cycle
You’ll need to be aware of where your start-up sits within the funding cycle before you begin pitching to different investors.
Ask some self-evaluating questions regarding your progress. For example, how far along development if your product, app or software? Are you currently earning real profits?
Knowing the answers to these, and being aware of your position, will help direct you toward the kinds of funding requests you should be asking for.
Self-awareness when it comes to your funding stage position will make clear to bakers that you understand, accept and acknowledge your businesses prospects sensibly.
Why Are You Seeking Investment?
Establish clear and tangible reasons for your funding requests. Show how and where the money you’ll be receiving will benefit your start-up. A strong pitch will demonstrate confidence and personality, both of which will appeal to investors!
Each stage of the funding cycle will have different needs and requirements, so ensure that you’re familiar with these before pitching.
What you’re asking for will need to be realistic and within your company’s targets.
Investigate Your Investors
Research and familiarise yourself with the investors that you’ll be pitching to.
Additionally, get clued up about the general behaviours and risk appetites of investors, as they’ll vary from stage to stage. Being in the know is important will impact your chances!
Knowing more about those you’re targeting will allow for an improved approach, as you’ll be able to adapt and alter your strategy where appropriate.
The types of backers you’ll attract will also be based on your financial needs, current progress reports and business milestones, so make sure you have all three up to date! Being wary of the various people you’ll be appealing to will help determine whether you’re asking for appropriate amounts or not.
Get Your Timing Right
Finally, put the effort in to evaluate your business and work out which areas you need to expand and develop moving forwards.
Determining where your efforts need to go will make obvious when the right time is to pitch your start-up. If you do it successfully, you’ll be able to avoid running out of steam at a later date when fresh backers are interested.
In need of some more guidance when it comes to business ventures and all things start-up? Be sure to follow Innovate UK on Twitter and subscribe to our YouTube channel for the latest news, tips and advice.
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Published on: 17th February 2018
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