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    Posted by Shane McQuillan 9 Jul 2019
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    When to Start Capital Raising

    According to the Forbes' editorial team from October 2018, it is well and truly the world of Darwin when it comes to startup companies and their odds of survival. In the study, it was estimated that, out of all the companies that they questioned, only 50% of them would be able to make it past the 5-year mark.

    And this is a figure that jumps off the proverbial cliff as the years count on. It's with this in mind that finding out when to start pushing for raising investment capital becomes a pretty important matter to consider. In addition to this, it's looking at the kind of time-frame that you should be looking to raise capital over.

    While there are certainly times that we can refer to as 'punctual,' 'premature,' and 'late' for the more conventional methods of securing funding, there are others where the rules of investment time are pretty much suspended. But we'll be getting into all of that shortly.

    A Matter of Timing - Starting Capital Raising

    It's relatively easy to say that for securing capital the 'old fashioned' way, you do have to have elements of your business set up before having the ability to go up to Equity and Debt investment sources to get some new financial runway.

    It's pointed out that, as an entrepreneur at the head of a business, you need to have certain elements of your business taken care of. The worst-case scenario of if you don't is that no VC or investor will take you seriously, and any attempt to secure a loan with a half-baked idea will just set you back even further.

    So, to avoid that being the case, don't start walking into meetings until you've accomplished the following:

    • Present your startup as a business and not some idea - as in, have a clear structure of where your business' customers are, how your company is equipped to appeal to them, and why they should consider you.
    • Have a clear understanding of what you need versus what you want - Along with showcasing your capabilities, skills, etc. You'll need to show the mechanics of your business, its income, and outgoings, along with how much exactly is needed to give it the resources it needs to grow. If you manage to do this well, then there's always to possibility of going beyond that 'necessity' figure.
    • Do your research - However long this will take you, it's important to know what investors or Venture Capital firms you can approach with your business idea. Along with knowing who or what to approach, it's knowing how to engage with them effectively and allow your business to truly resonate with them and get them motivated to invest in you.

    Going More Unorthodox

    Time is a relative concept, as Einstein put forward, and this is something that has spread over to capital fundraising solutions like Equity Crowdfunding, and especially for the blockchain/cryptocurrency world with offerings from STO's, IEO's and the older ICO's.

    EOS, for example, concurrently worked on the development of its blockchain solution, while running a year-long Initial Coin Offering, resulting in billions of dollars which it successfully added to its 'war-chest.'

    It should be said that equity crowdfunding platforms like Seedrs, do vary in the amount of information they need to list your business on their platform officially.

    So much akin to more conventional methods of funding, make sure to do your research into each of these platforms to see just what you'll needto successfully feature your company, and just how much you're looking for over how long a period.