My name is Arend Richard, and I recently raised just over $2,000,000 in capital for my startup business, Cirrus. I raised all the capital from Angel Investors, which can seem to be the toughest type of investor to find.
Whether you’re looking for tips on raising capital from angels, VCs, family offices, or anything else, the points in this video will help you gain some firsthand perspective.
Quick background on me and my raise: I’m opening a new experience concept called “Cirrus,” which is opening in just a few months in Denver.
Here are the tips and lessons I learned from raising capital:
Develop Your Elevator Pitch:
Something that really helped me was breaking down the goal of the business into 1-2 sentences. Once we did that, I was able to understand the future path of my business. It not only helps you fulfill the “elevator pitch” aspect of your business, but it will also help you develop future marketing and PR efforts by creating an ease of communication about your company and what it does.
Keep Your Pitch Deck Simple:
Many founders overcomplicate their pitch deck. Too many words and too much information will often make an investor uninterested in your project. Remember to keep it simple, use only black and white as much as possible, and use the deck to start a conversation, not to close a deal.
Generate Traction:
Finding a way to generate any type of revenue for your concept prior to investment will help you immensely. There are many ways to create good traction, but revenue generation will have the largest impact.
Network Effectively:
Finding investors can seem like the hardest part of this whole journey, and I would agree that it is. For me, networking was key. Meeting as many people as I could, sharing my story with them, and patiently growing relationships until investor introductions happened. The goal of networking is to actually build relationships!
Leverage Social Media:
Social media is a fantastic way to get introduced to potential investors. While there’s a certain tone to approach the subject with, it can be a powerful tool.
Cultivate a Strong Founder Mindset:
Raising money is tough, and it can take a toll on you personally. However, you can’t let that show. I recommend reading a sales book (like “Sell It Like Serhant” by Ryan Serhant) and learning the strategies of dropping your ego, following up, and approaching people without seeming desperate.
A Final Note to Founders:
You are going to hear “no.” Be grateful for every no, as it will help you be better prepared for future investors. Don’t let it discourage you!
References:
Email Me: Arend@cirrussocialclub.com
Sell it Like Serhant: www.amazon.com/Sell-Like-Serhant-Ultimate-Machine/dp/0316449571
Follow me:
Instagram: @ArendRichardArendRichard