Despite the fact that there is plenty of money out there, investors are still risk averse and more often than not prefer to say “no”. So, instead of trying to raise money on your own, should you engage a professional advisor?
You probably want to seek advice if:
Capital raising is really hard, and you’d rather to use your precious time and energy on growing your company;
You’ve never raised money from outside sources and are unsure of what to do;
You don’t have a network of investors and potential funders, and want to access one
How can a fundraising consultant help you?
- First of all, the consultant should believe in your company’s vision, your business model, your valuation, and your growth strategy;
- They should understand the capital raising process and able to give you a funding roadmap;
- They can help manage the process – investor outreach, raising and follow up;
- They can write presentation material and help figure out your capital raising strategy more clearly;
- They know who the right investors are and they can make introductions.
If you choose to work with a consultant (and there are many good ones, as well as not-so-good ones), keep in mind that investors still want to hear from you, i.e. the CEO of the company, so, be prepared!