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NOTE: Gia Keasler, provides today’s guest blog, How To Get Your Startup Ready
Gia Keasler is a contributing writer based in NYC. She usually writes about running and funding a startup and how to make it successful. She also does brush pen calligraphy as a hobby.
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Should you be wondering about the better ways to get your startup ready, today’s insights should prove helpful. Luckily, there are now various ways you can fund your startup. And one of them is through equity investment.
Equity investment is the process of finding a company in exchange for company shares. It is hoping that the startup’s value will increase over time and that it will receive capital gains or dividends.
Meanwhile, the equity investment also increases in value if the investor sells his shares or liquidated his assets.
Get Your Startup Ready Today:
However, not every startup is ready to accept equity investors. That said, we have listed seven things you can do to bring equity investment to your startup.
Find the Right Investors
Not every startup investor is right for you. Hence, it would be best if you did not bother them for investment.
According to Biospring co-founder Michelle Dipp, the secret to attracting investors is to know whether they are a good fit.
For example, you developed a healthcare app. It makes sense to reach out to equity investors who fund similar startups or any business in the Life Science sector.
It is also prudent to know when to use convertible notes and how best to use them. But why are convertible notes used by startups? They can help get the deal done, but they need to be correctly used to avoid any nasty long-term benefits.
Build a Website
If you want to attract equity investors to your startup, you should have an online presence. That way, investors would know that your startup exists.
An excellent way to build your startup’s online presence is to have a website. It is the initial step to getting your startup ready. But more than that, you should have a page dedicated to potential investors. You should also optimize this page for search queries that an investor will likely use.
Produce Investment Relations Content
Now that you have a website with a page meant for equity investors, the next step is to publish an investor relations page.
Investor relations (IR) is where you provide accurate content about the state of your startup. It includes an overview of your business, a stock evolution chart, and a downloadable IR presentation. Simply put, the content lets potential investors know that you are knowledgeable about how to get your startup ready.
Regardless of what you put in your IR content, it has to be as engaging as possible. Doing so can help potential investors make an informed decision on whether they should fund your startup.
Leverage Digital PR
Other than your IR content, you can also leverage online public relations.
What you need is a robust digital PR campaign. It can include getting published on relevant online media outlets or being mentioned by appropriate influencers. PR is an excellent way to get your startup ready.
Using our previous example, you would want your healthcare app to publish on websites like MayoClinic or Healthline.
There is also a growing number of healthcare professionals on Instagram and YouTube. Consider working with them to spread awareness about your healthcare app.
Mind you, startups that are making buzz are attractive to investors.
Leverage Social Media
Social media marketing enables a connection between your startup and your audience. But what if I tell you that you can also use these platforms to communicate with potential equity investors?
However, leveraging social media is more than just having a Facebook page. Social networks like Facebook and Instagram are good for showcasing what your startup does. But an equity investor is less likely to connect with you through these platforms.
They are more likely to check you out on LinkedIn. Thus, it would be ideal to ensure your LinkedIn account is up to date. It would also help that you have an email dedicated to accepting investor inquiries.
Determine Your Value Proposition
So, you have attracted your equity investor and scheduled your pitch. Now what?
Determine your startup’s unique value proposition.
Here’s the thing: Your unique value proposition can answer why an investor should fund your business.
But aside from your investor pitch, your UVP should also be evident on your website, IR content, and PR and marketing campaigns. You can also reiterate it on your website’s About Us section.
Pro Tip:
Treat your About Us and IR pages as your elevator pitch. It should be condensed and definitive within these pages.
Have a Robust Lead Capture System
From a marketing perspective, equity investors are like leads. Thus, you must have a system in capturing these leads.
You can start with your IR content. It is as simple as reiterating your startup’s UVP and then having a lead capture form at the end. That way, they can leave their contact details should they be interested in investing in your startup.
Another thing to consider is to leave contact details relevant to investor relations. That way, a potential investor can reach out straight to you if they want to schedule a pitch.
Benefits of Having an Equity Investor
As mentioned earlier, there are various ways you can find your startup. But it may not be enough to make your business scale and grow. It is where equity investors can help.
There are three reasons acquiring equity investment is beneficial for your startup:
- Debt Freedom. Equity investors help you reduce the need to apply for a business loan. As such, you do not need to pay someone every month.
- Expertise and Network. What’s incredible about having investors is that you can reach out to them for expert opinions. It is also likely that they know other investors who would be interested in investing in your startup.
- Additional Funding. Existing investors are likely to invest more in your startup, especially if your company valuation is increasing.
However, starting a business does not mean that investors will flock your way. And just like the pros, equity investments also have their cons, like shared company ownership.
That said, you need to follow the following tips if you want them to know that your startup exists:
- Find the right investors
- Build a website
- Produce investment relations content
- Leverage digital PR
- Leverage social media
- Determine your value proposition
- Have a robust lead capture system
By following the startup tips listed above, you can prepare your company for equity investors. As such, you can streamline the process of scheduling and executing a pitch. And when all goes well, you can raise the funds you need to kickstart your startup.
How are you preparing your startup for equity investors? Let us know in the comments!
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