Securing finances for your company is a never-ending and demanding
responsibility. Robin Chase, founder & former CEO of Zipcar, details the
risks and rewards of securing funding and reminds us to never overlook
unlikely sources of dollars in this quest.
Summary
1. Raising capital is not a job with a definite beginning and end. As soon as
one cycle is ending, you begin strategizing for next plan of action.
2. Seeking out funds can be an alienating experience as sharing too much
information with peers may compromise one's position with a potential
investor.
3. Capital can be obtained from the most unlikely people and in the strangest
places so never overlook what you feel may be an unobtainable source of
dollars.
4. Maintain relationships with investors and, if possible, those that may have
rejected your request for funding. Time may allow you to improve upon
factors that discourage them and in turn renew their interest in supporting
the venture.
5. In the end, fundraising is incredibly demanding and challenging work.
Obtaining capital requires diligence and a commitment to see the dollars
into the bank.
Ideas for action
1. Evaluate your current network of investors. Strategize with your team on
new, potential sources for capital and create a plan of action to connect
with these entities within the next 60 days.
2. Think about an investor or investors that may have rejected your request
for capital. Create a list of rebuttals to their rejection and schedule a
face-to-face to meeting to revisit and address their concerns.
3. Imagine you are a part of an angel group evaluating an investment in your
company. Compile a list of your strengths and weaknesses and how you might
address your shortcomings. Then, ask your senior management how they would
address the shortcomings.
4. Set aside 1-2 hours to evaluate how you communicate with current investors.
Choose two ideas to execute in order to improve upon investor relations.
5. Ask a trusted investor who turned you down to come in and speak to your
team about why you were turned down. Ask this person to focus on those
things you could have done better and would have control over in the future.
Questions to ask
1. Trust is an integral part of business relationships. But trusting your
peers with financial information may backfire when you embark on fundraising
within similar circles. Is it best to work alone when faced with raising
capital?
2. When might the effort to obtain capital be too great?
3. What are the optimal methods for communicating with investors? Is it always
best to share information face to face?
4. What can an individual do to map out a fundraising strategy for a new
venture?
5. In what ways do personal relationships have an impact on investor
relationships?
These video lessons are provided by Fifty
Lessons. For more video lessons from leading entrepreneurs and
executives, visit Cwerty.com Fifty
Lesson’s website for aspiring entrepreneurs and managers.
