Lessons for an Entrepreneur Part 2

12 Jan Lessons for an Entrepreneur Part 2

Over the course of the past few months, I have enjoyed the privilege of listening to our
investors speak to countless entrepreneurs at various stages with their companies and ideas.
Although no entrepreneur’s product is the same, there are a few pieces of advice that could help
virtually anyone:

1. To successfully gain funding, you must understand the need and market for your product
   and explain why you have a competitive advantage.
   1. More often than not, you will not be the only company pursuing the solution to
      any one problem. Thus, it is important to understand who your customers will be
      and why they will choose your product. Technological superiority and innovation
      alone do not guarantee success as there are many other factors, including price,
      that influence consumers.
2. When applying for funding, target firms or funds with investors whose backgrounds align
   with your company.
   1. This is especially true when applying to angel funds as most angel funds prefer to
      invest in companies targeting sectors where their investors have some level of
      expertise and can therefore perform a thorough due diligence. Ultimately though,
      having investors who are knowledgeable about your sector and company is
      extremely beneficial for an entrepreneur as these investors are better equipped to
      offer advice and constructive criticism.
3. Your pitch deck should be overwhelmingly thorough and explanatory.
   1. When looking at a pitch deck, investors want to be able to understand not only your product but also your mission, business model, and strategy. After all, at the end of the day, funds are investing in a company, not just a stand alone product.
4. Always try to maintain relationships throughout the entire fundraising process.
   1. Just because your company is not a fit for a specific fund or group now does not mean that it cannot or will not be down the line. Keep in touch with people you felt a connection with and make sure to nurture those relationships every couple of months.
5. Having to reroute, especially in the early stages, is not the end of the world.
   1. Every single major company has faced countless bumps in the road and none of them turned out exactly the way their founders envisioned. Thus, when you are in the beginning stages, it is completely normal for your ideas and company to shift and evolve as they develop.

Content by Leah Pothel.