THE question that almost all entrepreneurs who need to raise some money ask:
You've gotten your product to market and it seems to be a hit. You're starting to test out multiple sales channels. You're hiring. In short, your company's growing, which is great! And growth generally means you need funding to accelerate... There are two solutions: Either your firm is very profitable and/or has a ton of capital and you can borrow from a bank, or you don't and you can't! But if you can't take on debt, maybe you can raise capital... That means two options:
- either earn more than €1m in annual sales, preferably on a recurring basis, and aim to build a company that earns hundreds of millions in sales within a few years. In this case, you can seek out VCs (venture capital funds).
- or you earn less than €1m in annual sales but are quickly growing. You're hoping to sell your company in a few years for somewhere around €10 to 30 million. If so, you can go see Business Angels (or Angel Investors).
And if you fall in this second category, you need to know where to find these Angels. And lots of them! Because to get 10 who'll each invest €20 to €100k, you'll need to contact hundreds, possibly thousands... So either you've got an address book full of wealthy people or those who know them, or you don't and the long slog begins. You'd have to scour Linkedin 10 times a day for months, collect email addresses, meet with charlatans who'll charge you "retainers" (fixed sums) to cover unclear expenses, hold pitches at parties full of people who ask pointless questions just to invest €5k, spend trying months with generous retirees from Business Angel associations of varying quality... It's long and tedious work.
But at Super Capital, we can work with a full-variable model if your deck and BP are ready. We send your application to our community of investors: 10,000+ Business Angels and/or 20+ small VC firms and set you up with meetings... Before they're held, we help you prepare your pitch and talk about what to say and how to say it. Obviously, we're very selective and timing is also important!