"Is there startup money out there?" I responded to in my recent blog.
Today I'll focus on "Look in special places" for your seed money.
- Fresh is first - look for it. There are a lot of fresh, brand-new venture firms out there looking for seed round deals. Focus on them, hold off on the giant VC firms until you have found a dozen of these eager new faces. Each is attempting to be different, to stand out from the crowd. Look for what each focuses on to find the right one for your startup.
EXAMPLE: Xfund focuses on seed investments in startups founded by students, current and recent graduates. HQ in Boston with office Nr 2 in Silicon Valley.
- Crowdfunding syndicates soar - rise with them. This is a hot funding wave you might find works for your deal. An angel announces a deal in your company, gathers several well-to-do investors within a limited liability corporation and the LLC invests as a single investor in your startup. Fewer headaches for you with lots of angels investing separately.
EXAMPLE: Take a look at what angel Gil Penchina is doing with syndicates. AngelList explains more for you on its site. There are many more syndicates available - you can see many on the daily list at EquityNet.
- Catch the wave and ask to ride. Watch daily announcements of Seed and Series A financings. One way is via the free daily email from Crunchbase. That filters fresh deals by round, something difficult for you and I to easily find and filter. You can see what is hot, in what city and who got the money from whom. Most importantly, you'll see names of angels and venture investors, people you can reach out to.
If you want to know more about a deal, email the founder CEO. That's a private club you belong to as a budding startup founder. Most often you'll get a response to a question or two. You might receive an invite to phone or Skype.
- Be Prepared - live by it. Can you do your elevator pitch? Right now? You never know when "that person" shows up, the potential investor you need right now. So don't get surprised, get your elevator pitch polished, stick it into your brain and practice it on friends, in the shower, and staring at the mirror.
For tips on great elevator pitches, do a site search on this blog site (upper right) using "elevator pitch". There you'll learn from the best of the best, the serial entrepreneurs.
BOTTOM LINE: There is a lot of seed and A round capital out there looking for your startup. You can find it. It takes a bunch of effort, there is no shortcut. Serial entrepreneurs know how critical it is to find the right investors for the early stages of their fledgling enterprise. Its a key element they use to build an unfair competitive advantage. You can do the same. Get started, right now!
I wish you The Best on your Adventure!