Trying to Raise Money for Your Start-up? - Agency Insights - Xivic
Xivic Company Logo Mobile Menu Icon
Blog

Trying to Raise Money for Your Start-up?

By Bahman Zakeri,

Founder & Chief Strategist

12/02/2016

Share:

Investors. You need them. We promise.

They come in many forms, traditional and not so traditional. In this day and age, raising funds for your startup is definitely easier than it used to be (anyone heard of Kickstarter?), but it is still a challenging part to starting a company.

First off, you'll need a great pitch - don't be discouraged. There is a tried and true approach that we definitely approve of. We've been in the marketing game for 20+ years, and know a thing or two about how to launch a company.

Before we begin, here are six pointers you should keep in mind.

  1. Don't give them too much information. You only want to gain their interest. Here, the old adage rings true. Why should they buy your cow if you're giving away the milk for free? Leave them wanting more.
  2. Don't crowd your pitch deck with over-the-top graphics and copy. Keep it simple and easy to digest.
  3. Your deck should be able to stand on it's own, with or without a formal presentation. You may only be able to get in front of an investor via e-mail. Make sure your deck is self-explanatory.
  4. Keep it short. The best decks vary between 10 and 15 pages.
  5. Don't falsify information just to seem like you've got all the facts.
  6. If you want to give examples of your competitive set, don't bad-mouth them, simply show why you're different or better.

Ready to create your pitch deck? We've put together a step-by-step approach to get you started.

  1. Elevator Pitch: What's your tagline in a sense? You'll need a quick one-liner that explains your product and your mission.
  2. Key Numbers: Show your timeline from inception to present: your growth metrics, press, accolades, and partnerships. This is a good place to share testimonials or product reviews.
  3. The Market: What market are you a part of? What's the market size - large or small? How much potential money is to be made? Where does your company fit in and where does it disrupt? Who are your customers? Include your research of macro trends and any additional insight.
  4. Challenge & Current Solutions: Define the problem in the market which your company or product is answering. Here, you'll highlight on your competitive set, but save the good and bad for #10.
  5. Your Solution: Prove your value and how you're different (and better). Define your solution for your customer.
  6. Business Model: Define your revenue model and how you'll make money. What does the pricing look like? Are there tiers of revenue? Remark on how many customers you have to date. Are there lifetime revenue streams? Or, is it a one-time purchase?
  7. Strategy: Where are your potential customers going for solutions? How will you grab their attention? How will you achieve your growth projections? How will you reach your potential customers in a new and exciting way? How is your approach different?
  8. Team Roles: Highlight team members from leadership down. Note prior positions of importance, relevance, and expertise. How do their roles support your success?
  9. Financials: Shoot for 3 to 5 years of financial projections. Make note of assumptions for expenses, customer conversion and retention, and your potential market penetration. For each year, you'll need to highlight total customers, total revenue, total expenses, and EBITDA (earnings before interest, tax, depreciation, and amortization).
  10. Competition: How does your company exist in your market? What advantages are you bringing to the table? How are you unique? Comment on your competitive set further: what do they provide in the marketplace (good and bad)?
  11. The Investment "Ask:" Be transparent. How much money do you have and need to raise? What's the timeline? Do you have any investors already? Who are they? How will the proceeds be used? Mention founder salaries, new hires, overhead for space and/or equipment, marketing (very important), technology and product development, capital expenses and equipment.
  12. Thank you: Be sure to add a closing slide thanking everyone for their time.

This is everything you need to create an intriguing investor pitch that you can share with investors directly, online, or present in person. Good luck!

Our Insights

We're weighing in on the latest and greatest industry news.
HTTP to HTTPS: The Pros and Cons & SSL Migration Checklist

Xivic Blog

HTTP to HTTPS: The Pros and Cons & SSL Migration Checklist

Press Icon

HTTP to HTTPS: The Pros and Cons & SSL Migration Checklist

Tips for Working Better with Your Clients

Xivic Blog

Tips for Working Better with Your Clients

Press Icon

Tips for Working Better with Your Clients

Website Content Accessibility Guidelines and What it Means to Your Business

Xivic Blog

Website Content Accessibility Guidelines and What it Means to Your Business

Press Icon

Website Content Accessibility Guidelines and What it Means to Your Business

The Best Mobile Apps for Your Business

Xivic Blog

The Best Mobile Apps for Your Business

Press Icon

The Best Mobile Apps for Your Business

SEO Trends in 2017

Xivic Blog

SEO Trends in 2017

Press Icon

SEO Trends in 2017

Take Care of Your Team - Keep Them Happy and Healthy

Xivic Blog

Take Care of Your Team - Keep Them Happy and Healthy

Press Icon

Take Care of Your Team - Keep Them Happy and Healthy

Ways to Keep Communication Alive with a Mobile Workforce

Xivic Blog

Ways to Keep Communication Alive with a Mobile Workforce

Press Icon

Ways to Keep Communication Alive with a Mobile Workforce

Xivic Blog

"We Need to Talk" How Digital Agencies Can Have Better Relationships with Clients

Press Icon

"We Need to Talk" How Digital Agencies Can Have Better Relationships with Clients

Mobile Marketing Trends in 2017

Xivic Blog

Mobile Marketing Trends in 2017

Press Icon

Mobile Marketing Trends in 2017

4 E-Mail Marketing Tips for Business Leaders

Xivic Blog

4 E-Mail Marketing Tips for Business Leaders

Press Icon

4 E-Mail Marketing Tips for Business Leaders

Upgrade Legacy Systems for Your Existing Clients

Xivic Blog

Upgrade Legacy Systems for Your Existing Clients

Press Icon

Upgrade Legacy Systems for Your Existing Clients

Why Accelerated Mobile Pages are Important

Xivic Blog

Why Accelerated Mobile Pages are Important

Press Icon

Why Accelerated Mobile Pages are Important

Start Small and Go Big: 5 Simple Tips for Growing Your Online Presence

Press

Start Small and Go Big: 5 Simple Tips for Growing Your Online Presence

Press Icon

Start Small and Go Big: 5 Simple Tips for Growing Your Online Presence

Traditional Ad Agencies Need to Evolve

Xivic Blog

Traditional Ad Agencies Need to Evolve

Press Icon

Traditional Ad Agencies Need to Evolve

Many Startups are Borrowing Money these Days - Why?

Xivic Blog

Many Startups are Borrowing Money these Days - Why?

Press Icon

Many Startups are Borrowing Money these Days - Why?

4 Marketing Problems Facing Franchise Owners

Xivic Blog

4 Marketing Problems Facing Franchise Owners

Press Icon

4 Marketing Problems Facing Franchise Owners

Past the Ping Pong Table for Better Dev Team Culture

Press

Past the Ping Pong Table for Better Dev Team Culture

Press Icon

Past the Ping Pong Table for Better Dev Team Culture

Looking Ahead to 2017 - A Mobile-First World

Xivic Blog

Looking Ahead to 2017 - A Mobile-First World

Press Icon

Looking Ahead to 2017 - A Mobile-First World

Does Your Mobile App Idea Have Legs?

Xivic Blog

Does Your Mobile App Idea Have Legs?

Press Icon

Does Your Mobile App Idea Have Legs?

Trying to Raise Money for Your Start-up?

Xivic Blog

Trying to Raise Money for Your Start-up?

Press Icon

Trying to Raise Money for Your Start-up?

The Smart Office: How Connected Tech is Redefining the Workplace

Press

The Smart Office: How Connected Tech is Redefining the Workplace

Press Icon

The Smart Office: How Connected Tech is Redefining the Workplace

Hit the Road, Jack! Inside Apple's iPhone 7 Announcement

Xivic Blog

Hit the Road, Jack! Inside Apple's iPhone 7 Announcement

Press Icon

Hit the Road, Jack! Inside Apple's iPhone 7 Announcement

The Benefits of UX for Startups and VCs

Xivic Blog

The Benefits of UX for Startups and VCs

Press Icon

The Benefits of UX for Startups and VCs

Testing Is King: Our Takeaway from Silicon Beach Fest '16

Xivic Blog

Testing Is King: Our Takeaway from Silicon Beach Fest '16

Press Icon

Testing Is King: Our Takeaway from Silicon Beach Fest '16

Snapchat Wins Olympic Gold

Xivic Blog

Snapchat Wins Olympic Gold

Press Icon

Snapchat Wins Olympic Gold

Is the IoT Inevitable or Overblown?

Press

Is the IoT Inevitable or Overblown?

Press Icon

Is the IoT Inevitable or Overblown?

How the Internet of Things Will Make Your Business Better at Customer Service

Press

How the Internet of Things Will Make Your Business Better at Customer Service

Press Icon

How the Internet of Things Will Make Your Business Better at Customer Service

Join The Conversation

Contact Us

New Business Inquiries
(323) 525-0108
Career Opportunities
jobs@xivic.com
Public Relations
pr@xivic.com

7461 Beverly Blvd Suite #400,

Los Angeles, CA 90036

Bulevardul Primaverii 68

Iasi, Romania