I sit with so many entrepreneurs who ask, “what do I need to do in order to get the next round of funding?”
There isn’t one pat answer to this question, but here is what I tell them to make sure they have:
- Vision and Passion. You not only have to excite me to put money in, you have to excite employees, clients/customers, partners and new investors. If you aren’t excited about what you’re doing and able to convey that to me, you won’t get me to invest.
- Encyclopedic knowledge. You must know your clients, your industry and your competitors.
- Traction. Different stages of investors look for different levels of traction. Keep this in mind as you set your milestones and articulate your progress to the investor.
- Thick skin. Get used to hearing “please stay in touch as you get more traction.” Most VCs do NOT want to miss out once your traction falls within their investment range. If we don’t think there will be a good fit — now or in the future — then we try and say “no”.
This isn’t everything you need, but raising your next round will be tough if any are missing.
Moonshots Capital is a military veteran-founded venture capital firm that invests in early-stage startups with extraordinary leaders.
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