Insights
Raising Capital

The Best Start To Raising Business Finance

Uploading your pitch to the GrowthFunders platform doesn’t mean it’s time for you to put your feet up. Actually, it’s the complete opposite.

You have to work hard to build brand awareness and make sure that your business is visible to every potential investor out there.

Sector studies have shown that there is a distinct tipping point between entrepreneurs targeting, and not targeting, their own network of family, friends, and contacts, when encouraging investment in their businesses.

For example, raising the first 30% from your own network and anchor angels could mean the difference between reaching your target amount, and not.

Types of Investor

  1. People from your own network (online business angels)

  2. Individual investors / angel networks.

Don’t underestimate the value of your own network

Chances are, that you don’t think you know that many people, especially not those who are in a position to invest in your business.

Your network doesn’t just have to consist of close friends and family. Think about any social networks you may have accounts on, and the number of friends and followers that equates to.

Or maybe one-or-two of the lads at the five-a-side you go to every Thursday night run their own business, or work in the financial services sector.

If they fully understand the potential risks and rewards of investing, and feel that your business is one they do want to invest money into, then you’re already off to a great start.

All it takes is a spark, ignited by early investments made by your network, to erupt into the amounts invested by the angel networks and VCs, etc.

The importance of angels

Angels networks and VCs are where the large amounts of capital are most likely going to come from.

Angels want to see you that you are willing to put in the time and effort needed to build momentum in your fundraise. It’s pretty standard stuff, really.

If you fail to show your commitment to the process of raising capital for your business, why would you act any differently when it comes to the actual day-to-day running of it? Show them that you are in this, 100%.

They also want to see evidence of support from the people around you; those in your network. People who know you and believe in both your skills and your business.

Do you have what it takes to fulfil the true extent of your business’ high growth potential? Well, make sure that investors can see that.

Co-investment and Syndication

The GrowthFunders platform operates a nominee structure, by which suitably-qualified individual investors can co-invest in opportunities alongside angel networks and VCs.

Similarly, angel networks can syndicate in deals alongside other angel networks. Having an achor angel or angel network can maximise your chances of a successful equity finance fundraise.

What else can you do?

If you don’t have much in the way of a marketing budget, there are still effective ways for you to generate interest in your business. Use social media channels to engage with your audience. For more information on how social media can be used effectively during your funding campaign, check out our ten-part blog series, How To Create A Killer Equity Crowdfunding Pitch.

You could also contact the local press, perhaps offering yourself as a human interest story. You know your business better than anybody - make sure the facts are there. Use the opportunity to, express your passion for your business and your excitement at the prospect of raising growth capital.

Or maybe you do have money set aside in your budget for marketing, but don’t know who to choose. If that’s the case, then help is at hand in the form of our Partner Community page. Just head over there to view the marketing agencies listed, decide on the best fit for both your business and your budget, and contact them to find out more.

Your focus, during your campaign period, should be on generating interest in your business and gaining momentum in order to encourage investments.

The Three Ps:

  1. Promote

  2. Push (without being pushy)

  3. Persevere

For more information on using GrowthFunders to grow your business, download our Entrepreneur’s Guide now. It’s free and tells you everything you need to know about equity crowdfunding and how GrowthFunders can support you through your fundraising campaign.

 A guide to tax efficient investing - download your copy

Driving Growth.
Creating Value.
Delivering Impact.

Backed by

Growth Capital Ventures (GCV) is backed by funds managed by Maven Capital Partners, one of the UK’s leading private equity and alternative asset managers.