When it's time to raise funds, here's how to get started
Founder of start-up companies Anyone embarking on a Series A fundraising round should keep this in mind: Your relationship with the members of their board of directors can last longer than the average American marriage.
In other words, whoever invests in a startup is just as important – or more – than the total capital they bring with them.
It's important for founders to get to know the people who come to their board as they are likely to be part of the company for a long time to come and they are really hard to fire, Jake Saper of Emergence Capital during theinformationsuperhighway's Virtual Early Stage Event in July. However, making a connection isn't as straightforward as you'd think, added Saper.
The fundraising process requires founders to meet with numerous investors before making a decision in a short period of time. "Neither party gets to know the other really well enough to know if this is a relationship they want to enter into," said Saper.
"You want to work with people who give you energy," he added. "And that's why I strongly encourage you to meet potential Series A leads soon after you've completed your starting round."
Here are the best ways to meet, attract, and select Serie A investors.
Identify industry experts
Saper recommends extending the normally short series A timeframe by identifying a handful of potential leads once a founder has completed their starting round. Founders shouldn't just pick someone with a big name and a formidable fund. Instead, he recommends focusing on investors who are appropriate for your startup's business category or industry.