Heaptalk, Jakarta — In business, fundraising is a common activity conducted by entrepreneurs to start or expand their business on a larger scale. In the investment collection process, a start-up should position itself as an applicant and as an investor. This action is substantial as it leads start-ups to think critically to perceive the investor’s sight and demand. Anis Uzzaman, a General Partner and CEO at Pegasus Tech Ventures, shared his knowledge regarding fundraising based on the investor’s perspective.
For a start-up, finding an investor is similar to looking for a mate by taking into account its unique role in the business’s future growth. Investors are a factor that determines the business’s future; they can promote the business to grow rapidly or even lead to failure. In addition, obtaining investment is challenging. For these reasons, from the beginning, entrepreneurs should devise a bright tactic to attain both the capital and investor that can be a partner in spurring the business value.
Anis, in Ask A Silicon Valley VC discussion (03/17/2021), revealed a strategy to achieve the fund collection. In that session, he suggested start-up convince the investor who the business is in line with the start-up’s business. This kind of financer is also known as a strategic investor. In a capitalist’s thesis, delivering investment to an entity with the same vision as their business field will contribute to them a real advantage. As an example, a Bank will tend to pour their investment into a high technology start-up that the technology potentially improves the Bank’s performance. The benefit earned will make the investor more enthusiastic in entrusting their fund to the start-up.
In addition to decisive the targeted investor, a start-up should continuously strive to access them. Anis stated that entrepreneurs are able to contact the investor through their social media in LinkedIn and Twitter messages. These two social media are considered as effective ways to reach the investor.
“LinkedIn is the most effective tool in getting called off some of the top investors. I will suggest you use this. I have also seen that you can use Twitter e-mail,” stated Anis Uzzaman.
However, in many cases, the overload activities and messages, both concerning the investment proposal or mentoring, generate them not to pay more attention to social media. They do not have enough time to reply to the messages one by one. Therefore, as the solution, Anis mentioned that start-ups could build indirect communication by creating an excellent relationship with the investor’s circle.
Building communication, particularly to companies around them or people two or three-level below the investors, will be the best way to span them. They will assist entrepreneurs to closely relate to the investor as their role in providing a recommendation. From an investor’s standpoint, committing their fund to a recommended company is safer than to other enterprises they just met.
“So the best way, I will open those e-mail and inquiries (from entrepreneurs) that came through a friend. So, it is always good to go through your best connection and recognizable connection. Sent an e-mail through them.” said Anis Uzzaman (03/17/2021)
Aside from building communication, entrepreneurs must have outstanding planning to be proposed to the investor. Careful planning implies a company running its business seriously and demonstrates its readiness to receive investment. As a proposal is critical to impress the investor, the entrepreneurs should create it as attractive and easy to understand. The excellent proposal can be evaluated by their plan in utilizing the fund and their way to bring benefit to the investor. The entire investor will question the exact amount of investment that the company needed and how to earn it back with the high profit. The apparent strategy highlighting the benefit is the key factor to captivate investors.