{ "media_type": "text", "post_content": "Has anybody cracked the code on how to raise funding without having any connections to VC or angels. \n\ncold emails seems to be a waste of time. Can’t even get a meeting.", "post_id": "61e5fecd74a57100378fccd7", "reply_count": 27, "vote_count": 11, "bowl_id": "5b0ec788cf11a800139f9490", "bowl_name": "Startups and Entrepreneurship", "feed_type": "bowl" }

Has anybody cracked the code on how to raise funding without having any connections to VC or angels. cold emails seems to be a waste of time. Can’t even get a meeting.

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Here are a few tactics that I have seen working for startups: - applying to an Accelerator Program - be part of a startup community that connects Angels and founders (ex: Stone and Chalk, La French Tech, Chamber of Commerce....) - use first degree network to reach out to high networth individuals or recommendations to VC - Find a Chief Evangelist that has influence in the Silicon Valley (or elsewhere) I have also seen companies that eventually gave up on pursuing the VC route because they didn't reach the required $1m ARR and refocused on becoming profitable instead. I hope that helps a bit. It is a difficult journey but persistence seems to be key.

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💯 focus on generating revenue and at least 20+ customers for a SaaS product (few can be unpaid customers), then rest will follow

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Crowdfunding? What industry or sector are you in?

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Also, once you get your growth narrative right, you could consider looking for VCs within the energy sector on LinkedIn, like Shell VC, who have an incentive for energy usage to continue.

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Needing connections is a myth. Well, that is, unless you live somewhere or are reaching out to firms/investors who are actually just jerks or entitled (they do exist). Legitimate investors in startups, help Startups. VC firms have teams of people (genuine VC firm, not the claim of such), and Associates and Principles are supposed to take meetings. Are you teaching out to *them* or the Partners? Angel investors, genuine angels and not just people who say they invest in startups, or have done one and now say they're an Angel, are "Angels." That name is in quotes for a reason: they help. So, are these people actually angels?? Now begs the more important questions. 1. Are you doing what THEY support? If they don't know or care about your space, you're wasting their time. Startup investors aren't banks; they help what they know and like, not just anything. 2. Do they know you? Do they know your startup? "But Paul, that's why I'm emailing them!" No! People hate email. Particularly cold email. Fueling the illusion that introductions matter. The fact is, it's easy to be known, and as a passionate startup founder with a meaningful startup, it's valid that investors in particular would expect you to be known. That's half the battle, being known! Otherwise how are you getting any validation, demand, and growth?? So, have you reached them on Twitter? Connected on Linkedin? Met them at the meetup? Do you have any relevant and popular content in local social media groups, or the news?? "Hi, you've never heard of me... I need money," is a rough start. Which begs #3 3. Are you just pitching and asking for money? No. We're dating here, I don't even know you yet. You just want to get right to bed?? What do I/we do that can be helpful? What are you struggling with? Why would it be valuable for us both to meet?? 4. Most importantly, are you sharing what's in it for you or them?? Venture investing is NOT like buying stocks and it's not philanthropy. Which is to say, it's not purely picking great ventures and putting money in. Nor is it just giving money to starting and hoping. It is investing! And you, unknown, are likely to fail (sorry for the harsh reality but it's very very true and very likely). So, lead with otherwise. How will it be valuable to them to get to know you? Not just financial potential but what else?? I write about this a lot. We teach it. So here's one to start and you can explore more: https://seobrien.com/different-approach-reaching-angels-vcs

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Love your comment and your article, but damn is your article annoying to read on mobile: the feedback button on the left often obscures the text, meaning I can only use half of my phone screen for content, and the picture on the top right is very distracting while I’m reading. Also, what coin price is that? Why should I care? I just want to read the article. Great stuff though, just thought you should know.

just make the connections yourself. Be part of the community and you’ll cross paths with investors. Or hire someone that can

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I work at a top strategy consultancy and would like to make the pivot to start - up. I’d be happy to lead on capital raise work - feel free to DM me if you’re hiring

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Get in touch with an investment company - the one which can incubate you and help you raise funds. Thats the best way to do it

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How much investment are you after and at what valuation? 👀

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Thanks. We’ve actually never gotten push back on the valuation. Yes, it’s 30k per year but we’re dealing with SMBs and our revenue per user per year is $45, so as you can tell, it’s a volume game right now. Considering we’re bootstrapped and all of our acquisition is through paid media, I think we’re doing pretty well. Our CAC is like $66 per SMB and right now our LTV is probably around $225. We plan to monetize our users more after funding which would increase our LTV but we need money to do that. Right now, we’ve proven the business works and customers use us. Market size is $13B

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As I have seen and experienced, this is what might work: 1) Networking by going into startup events and meeting other founders / potential investors. You might come across founders who might recommend their investors. 2) Get into startup competitions or programmes. Winning accolades help in getting a stamp of proof that shows there is interest by the community on what you are doing. 3) Find fund raising brokers who can find angel investors. But beaware, the brokers might have some hefty commissions or could get you investors who have no strategic value at all. So you might want to carefully think your valuation terms and investment terms. 4) Persistent. I know a few startups who have had put around 400+ investment applications and only had 1% of the applications reply back. Hope this helps!

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If you are a minority or your cofounder is, there are plenty of investors to give you money if you reach out! Try to get in front of folks and look for city grants.

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In the early 2000s my friends started a company right out of college. The way they got the attention of a VC was by physically going to the office building of the VC and standing outside of the VC office window with big signs that read something like (obviously omitting the name of the company here) "X company wants to meet with you!" It worked. I don't think that approach would be as successful today with Covid flying around but it might be worth a try.

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Have you got any paying customers ? that will make a huge different, and investors will look at you as a real business not just an app on the phone

Yes

Y combinator and other Programms like this

I would research podcasts that interview guests that are leaders in the industry that your aiming at. A) Reach out to those individuals on linked in and social media b) reach out to the podcast host that interviewed that person and ask for an introduction.

How much do you need? I have money to invest in good ideas.

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