During my volunteering work at Campus TLV, I work with startups on entrepreneurship skills and technology. One of the popular topics is the subject of this post: “How to raise money”. It’s a challenging topic on many levels. You wish to raise enough money but not too much. Why? because at this point of the startup’s life you are giving a slice of your company (=equity) to the investors and you don’t want to sell too much or too low. Here are few guidelines:
- In order to raise money for your dream you need to convince investors that you are the ‘champion’ of this domain. If you are currently not the ‘best’ in the world – think how you become part of the top 1% of people in the world that do X (when X is your product/service). Savvy investors knows that it depends on the team (=you) and its ability to execute against their ideas.