Five smart roads that can raise money for your startup

There’s this amazing concept that you have, and you know by your gut that this would be a smash hit in the marketplace. Not only would this create a niche segment of customers, but also create a new level of market altogether. You are so immersed in thinking about executing it to the last detail. But, this huge gap between you and the market is only widening. Besides this, it is also threatening to derail your entire plan to make your venture a success.

Of course anybody who has tried swimming in the sea of market, looking for venture capitalists (VCs) to fund their dreams that are bound to make it big later; know it too well that raising money, even if one opts for crowd funding, isn’t as uncomplicated as it sounds. This topic was discussed at great length at the TiE Smashup 5.0 recently held at IIT Bombay as well, throwing light on what added credibility was required to attract funding for anything that was going to rock the market.

Here are five pointers that would be helpful in ensuring your dream is well-fed with funds so that it can grow into a healthy product.

1. Pool in your own resources
Make no mistake. Finding funders for your startup is probably the most difficult part of the job. It is highly time consuming, and can potentially distract you from developing your product, and is also fraught with emotional upheavals. Worst part is, the results are never under control.

But, this is what makes this journey as exciting as it can get. If you can factor in time spent on looking for funding and draw up a strategy to get the funders buy into your product, you have arrived with a plan and clarity. Ensure that you have pooled in some of your personal resources so that when you present yourself before the investors, you as an enterprise look healthy and not famished and desperate for ANY money they can throw in your direction.

2. Be realistic
Even if you appear a small enterprise, being honest and upfront is better than selling fabricated dreams to VCs or funders, no matter how big they are. Stay rooted, and chart a plan, which has a clear roadmap if not a perfect one, to discuss with them. Have short term goals, and an end goal – all within the realm of practical reality. It not only shows your preparedness, but also establishes credibility as a communicator. Positive and precise communication is key, not exaggeration.

V C Karthic of WoNoBo and Buzzworks Business Services, who is also an angel investor, said, “Humility is more important than ability. Big ideas need to surface not just ‘me too’ ideas. Investors need start-ups as much as start-ups need investors. Just because your start-up is not fundable does not mean it is not sustainable.”

3. Integrity
The propensity to use funder’s money to celebrate bask in the glory is not done. To have this integral value will definitely help the funder place more faith in you and your potential. When customers send you a feedback about the product, accept it gracefully. Because, you are working to please that person at the end of this product chain that begins with you.

Hitesh Bhatia of Noodle Play and TiE Food Network said, it is important to please your customer. “Own up to your mistakes, and don’t compromise. Communicate. (For instance) Running a food startup is much like wooing your girlfriend into marriage - the commitment lasts forever,” he added.

4. Pragmatic roadmap
Having a roadmap that isn’t too ambitious for the given set up is something the investors look forward to hearing from you. Don’t build castles in the air as they collapse even before they are complete. Investors are not the people you should be selling dreams to. They will be more than satisfied with your well-etched concept.

5. Raise curiosity
Most startups don’t use media efficiently with the fear of having to face backfiring. Learn a thing or two from politicians; learn to handle positive as well as negativity with equal aplomb. Reaching customers through media gives some sort of credibility that can be built upon. And hey, good PR can also help you find and connect with funders too.
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