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How Do Entrepreneurs Raise Money For Startup Businesses? - Revolutionary Industries

How do entrepreneurs raise money for their startup businesses?

There are quite a few ways to do it but there are a few factors that will come into play, including:

  • The number of investors you know
  • The number of people you know, generally
  • The number of fans/followers on social and other media – how much media exposure do you/have you had?
  • How much experience do you have running a startup?
  • Have you ever grown a business as you project in your financials?
  • How mature is your Startup Business?
  • Just an idea or do you have a team?
  • Do you have any Revenue?
  • How well do you know your numbers?
  • What are your projections?
  • Do you have a Business Plan? Pro Forma Financials? What are your margins?
  • What’s your customer acquisition cost?
  • Do you have an Intellectual Property? Anything patent-able?
  • How many times/how much investment capital have you raised for other businesses? How did they do?
  • Do you have a successful track record?

Lots of factors determine the readiness of a startup founder or team is ready to start pitching investors, and even more effort goes into preparing for that capital raising campaign.

New Founders. It’s gonna be tough. Not impossible, but tough. Unless you know people. And it’ll be easier if you know people/family with investment capital. Sometimes a friends and family round can create the momentum and interest your capital campaign needs to attract other investors. And the dirty little secret of being a startup founder: it’s on you. You need to cover the bill. Unless your business is generating enough profit to do so: you’ll be covering the tab for a while. And before you start approaching any investors (even those close to you) – get your ducks in a row. Know your stuff. Know what you want to do. Know what you will spend the money on and what the return will be. Know what you are asking for – specific dollar amount – and what you are offering in exchange. Have detailed and updated financials that show potential investors you’ve thought about every scenario and you’ve made conservative revenue estimates and padded expenses enough to cover any unforseen hiccups.

Because there are ALWAYS unforeseen hiccups when running a Startup business.

Veteran Founders. It’s still gonna be tough but at least you know that by now. Even if you’ve successfully raised millions in the past: it doesn’t mean you’ll be successful again. But it’s a better predictor than not. And you’re going to still have to get all your ducks (and docs) in a row and present the polished business pro that you are.

Its just that your Rolodex is a bit fatter. You are more experienced. You know what investors are looking for. You probably a handful of investors who would likely be interested in your deal. This comes from experience.

As an experienced founder you will undoubtedly talk to other founders about founder stuff. Funding is a big one. I argue that all startup founders have 2 full-tie jobs: 1) Being a CEO and executing on all cylinders and building a successful business from scratch, and 2) Fundraising. How are you going to pay for it all? Gotta spend money to make money most of the time – you know that. No fuel, no fire.

When you’re ready to start getting your ducks in a row to prepare your startup/s investor pitch and documents and to put your best foot forward: get in touch and we’ll help you become invest-able.


Take the first step towards achieving your business dreams today. Click below to schedule your free consultation with Peter Johnson.


contact @ revolutionaryindustries.com

3278 S Wadsworth Boulevard #1-94
Lakewood, CO 80227


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