![]() Investors still benchmark against the same criteria. The reality is that there is no significant change to the way investors assess which company they will invest in. Investors also want to see what you are doing to reduce your burn and extend the lifetime of what you currently have. Think, what does your performance look like over this time? How can you show investors that you have reduced cash burn? You can’t just extend your runway by raising more money in these circumstances. Given the current uncertainties, founders should look to having an 18 or 24-month runway beyond the usual 6 to 12 months. It pays to look at your cash runway when making your capital raising plan. Plan your pathway to success by extending your cash runway and reducing cash burn Plan A – if things go well, it looks healthy, and a plan B that’s not as great but shows you’ll still get through. ![]() For instance, it could be valuable to model a couple of different scenarios, i.e. Think about how your business might play out in the next six months. When thinking about the right amount of money, investors and venture capitalists want to see evidence of awareness – that you know what the market conditions mean for growing your business. It pays to look to the most recent information you can find, as markets change a lot within a short time.īeing realistic about the market is vital to ensure you raise the right amount of money. Meanwhile, investors are looking in the other direction – looking at the current state and looking forward. When looking to raise capital and approach new potential investors, founders often look back to public market information they might have from last year. Be aware of current and future market conditions Read more: The trend of climate innovation in New Zealand. Whether it is a monthly update, some other form of communication, or even changing the cadence, figure out consistent ways to keep in touch with those investing in your business. Make a constant effort to strengthen those relationships with your existing supporters. Getting new investors involved in more challenging times might be more difficult, so it pays to look after the ones you already have. Show your existing shareholders some love As indispensable as their morning coffee. Ultimately you want your customers to feel that your product or service is essential. Work at looking after your customers consistently with regular updates and communication, giving them free trials for new products or another low-cost strategy. So it is worth investing more in customer success by showing your current customers some love. In challenging economic times, consumers naturally justify their purchases more carefully – including the upcoming annual subscription to your product. Thanks to Rudi Bublitz, Flying Kiwi Angels Cassie McAdams, Movac and Rob Vickery, Hillfarrance Venture Capital, for sharing your wisdom. Here are ten tips from the webinar that will be invaluable for founders and entrepreneurs on their path to success in their fundraising efforts. They were full of encouraging and practical tips for founders and entrepreneurs looking to raise capital. I hosted a panel of experts from various investment backgrounds at a recent webinar. There are, in fact, massive opportunities for Kiwis amidst the current turbulence of the global markets. So, what can start-up founders do to improve their chances of successful capital-raising in this changing and challenging economic environment? I am hearing from founders that raising capital has become more challenging, whether they’re raising their first or follow-up round. We now find ourselves in an increasingly challenging economic climate – high inflation, increasing interest rates, labour shortages, and supply chain issues. According to a recent publication by PWC, approximately $257 million have been invested by Early Stage Investors in start-ups in 2021, a 63% increase compared to 2020. Start-up investments have been super buoyant in the last two years.
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