Raising Startup Funds: The Basics

Startup fundraising consists of several rounds, depending on your level of business development. If you’re just getting started on developing your product demo and forming your business, you’re in the pre-seed round. In this round, founders typically rely on their own money or investments from family and friends.The first formal phase of startup funding is known as the seed round. In this phase, you’ll need to pitch investors that might include venture capital firms, angel investors, or other investment institutions. After the seed round, startup funding rounds are labeled Series A-C. Each round focuses on expanding your business’s customer base and revenue growth even further.
Before planning a virtual event to raise funds for your startup, you’ll want to understand which round of funding you’re working toward. This will help you choose the right type of funding to pursue, investors to pitch, and events to host. Here are a few other things to keep in mind before launching a fundraising round for your startup:

1. Get Your Documents in Order:
   • Some investors may ask to see financial records, business formation documents, or other paperwork to make sure you’re a reputable business. Work with a business advisor to dot your i’s and cross your t’s ahead of your fundraising events.
2. Begin Fundraising Early:
   • Don’t wait until the last minute to begin raising funds. Large investments can take a long time to line up. Aim to begin your fundraising round at least six months before you expect to run out of money.
3. Create a Detailed Business Plan:
   • Investors want to know exactly how you plan to use the money you raise. In your business plan, outline how you plan to grow the business and why you need to raise funds to pursue this line of growth. Include everything from equipment purchases to employee recruitment and engagement strategies.

5 Ways to Raise Funding for Your Startup

Now, let’s dive into the specifics of using virtual events to raise funds:

1. Virtual Events:
   • Replace in-person pitches with virtual events. Connect with investors from the comfort of your workspace.
   • Host webinars, online conferences, or virtual networking sessions. Use platforms like LiveWebinar to engage with potential investors.
2. Online Presence:
   • Build your online brand. Maintain an active presence on social media, your website, and relevant forums.
   • Use content marketing to showcase your expertise and attract investor interest.
3. Networking:
   • Attend virtual conferences, webinars, and industry-specific events.
   • Leverage LinkedIn and other professional networks to connect with potential investors.
4. Crowdfunding:
   • Platforms like Kickstarter and Indiegogo allow you to raise funds from a large audience.
   • Create compelling campaigns and offer attractive rewards to backers.
5. Angel Investors:
   • Seek out individual investors who believe in your vision.
   • Use online platforms that connect startups with angel investors.

Remember, the virtual landscape offers immense opportunities for connecting with investors and securing funding. So, go forth, pitch your startup, and turn your vision into reality!