Why Aren’t You “Funded”?

Typically there are 3 reasons why you don’t have the funding you need:

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You’ve never raised money before.

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You don’t know all the money sources that are available to you.

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You’re only going after the ordinary, obvious money sources

And the problem is this…

If you fail to raise money.

  • You can’t start your business
  • You can’t grow your business
  • You can’t compete
  • You can’t achieve your goals

The #1 Funding Mistake To Avoid

The biggest funding mistake to avoid is going after the WRONG source of money!

And unfortunately, most entrepreneurs go after the sources of money which are the hardest to raise…and that’s why they never get the funding they need. To illustrate this and to teach thousands of entrepreneurs how to successfully raise money, we created the Funding Pyramid…

funding-pyramid

As you can see, the Funding Pyramid has 9 stages, each representing a type of money you can raise for your business…

The types on the bottom, like ‘Your Own Money’ are simple to raise, and the types on the top like Institutional Equity (venture capital firms, private equity firms and corporations) are very hard to raise…

The “trick” to getting funding is to work your way UP the pyramid… You start by raising the easier sources of money at the bottom first, and then gain access to the harder sources near the top…

How Do You Find Investors To Fund Your Company?

The first thing you need to do is to choose the right type of investor…

There are 2 main types of investors: individual investors and institutional investors.

1. Individual investors are investors who invest their own money in companies. They are better known as “angel investors”…

2. Institutional investors are investors who invest their company’s or others’ money. The largest class of institutional investors are known as “venture capitalists”…

Now, most likely, you should be seeking angel investors and NOT venture capitalists….

Here’s why…

To begin, most venture capitalists won’t invest less than $2 million in a company, which is often too much money for a startup…and would cause you to give away too much control of your company…

And, most venture capitalists won’t invest in companies unless they have already accomplished several milestones (such as having a developed product and customers)…

That’s why most venture capitalists fund companies who have raised angel funding FIRST… So, while venture capital might be perfect for your company later, in most cases you need to first raise angel funding…

The 6 Steps to Raising Angel Funding

Step #1. Know What Angels Want

The first step in raising angel funding is to understand precisely what angel investors are looking for…

I mean, if you don’t know their hot buttons and what makes them tick, you can’t possibly get angel investors excited to write you a check…

That’s why you need to start by understand the exact triggers and motivations that get angel investors to react…

Step #2. Protect Yourself

The next step in raising angel funding is understanding the legal issues you must adhere to…

You see, in Malaysia, when you raise funding from angel investors, you are selling securities…

And the sale of securities is governed by the Securities Commission (SC)…

And, if you don’t follow the proper procedures, you can:

  1. Fail to raise the money you need
  2. Get sued by investors
  3. Go to jail

So you need to make sure you follow the appropriate legal procedures to prevent such negative outcomes…

Step #3. Find Investors

The third step in raising angel funding is to find angel investors…

This is my favorite step, because:

  1. It is the most important
  2. Most entrepreneurs get it wrong

The fact is that angel investors are all around us…

That’s millions of potential angel investors for your business…

And the best part is that these are mostly “latent” angel investors. That means they don’t look at themselves or call themselves angel investors. And they don’t get bombarded with companies to fund…

But, they have the means, ability and interest in investing in companies like yours…

And why wouldn’t they…Virtually all of these investors have money in the public stock markets, which have provided negative returns over the past 10 years…

While angel investing, according to the Center for Venture Research, has resulted in 27% annual returns…

So you are actually doing these investors a favor by having them invest in your business…

And finding these investors is easy when you know how to do it!

Step #4. Contact Investors

The fourth step in raising angel funding is to contact angel investors…

You see, once you’ve identified and created your list of angel investors, you need to reach out to them to start the conversation…

This seems fairly straightforward, but most entrepreneurs get this wrong…

In fact, contacting an angel by immediately asking for their money is sort of like asking someone to marry you rather than simply asking them out on a date…

Step #5: Make Your Pitch

The fifth step in raising angel funding is presenting your deal to the angel investors…

A lot of entrepreneurs screw up here because they don’t include the right information in their presentations…

Rather, they talk too much about their products & services, and not enough about the key issues that the angel investors care about most…

Step #6: Close The Deal

The sixth and final step in raising angel funding is closing the deal…

You see, it’s pretty easy to get an angel investor to say they’re interested in your company…

But getting them interested is not enough…you have to move them from interested to physically writing you a check or wiring money into your bank account…

So there you have it…If you follow these six steps, you can raise all the money you need for your business from individual or angel investors…

Now because raising money is so critical to your success, and to make sure you raise all the money you need, you are invited to a presentation session where we will update and share our proven formula for raising money from angel investors with you.

It’s called….

Capital Strategy Session

This is a 3-hours session and if you are a business owner, this is relevant to you and you must come and find out more. If you want to bring your business friends along, you are welcome to add their registration with us. The only requirement is they must be a business owners.

In the session:

  • you’ll learn exactly who angel investors are…
  • you’ll learn the legal issues you need to adhere to when raising angel funding…
  • you’ll learn exactly how to find angel investors…
  • you’ll learn how to contact angel investors…
  • you’ll learn how to present to angel investors like a pro…
  • and you’ll learn how to close the deal…

So you can simply and methodically raise all the money you need to start or grow your business…