Return to site

Why you need help for raising funds for your startup

We sometimes hear people say you don't need help when fundraising from Business Angels, that it would look bad, etc. We believe the opposite is true!

At Super Capital, we're focused on the famous "equity gap", which is basically fundraising at levels between €200k and €1m. Below €200k, it's possible (and almost "easy" in some regions) to seek out government funding or bank loans and a bit of love money. Above €1m, there are plenty of VCs (investment funds) that can sink a lot into promising companies that aim high. But between the two, it's like crossing the desert...
Blessed be the Angels!
Fortunately, there are what are known as "Business Angels" or "Angel Investors": Individuals, often buiness leaders, sometimes senior executives or retirees, who enjoy investing some of their income or assets in young, growing companies. And that's precisely the kind of investor we're interested in, because they're the ones most likely to invest in that equity gap. Each one typically puts up €10k to €100k at a time, in rounds of about €200k to €1m, sometimes more.
Who knows 500 Angels?
To take one example, for a €500k fundraising round, you'd have 25 Business Angel investors each contributing €20k on average. But to persuade 25 people to invest in your firm, you'd need to meet with twice that many, or 50. And to get meetings with 50 private investors, you'd have to send your pitch deck to about 500 potential Business Angels... That's where it starts to get complicated! Who even knows 500 people who might be interested in investing in a startup? Not many do... Building a reliable, qualitative database of 500 Business Angel profiles would take you about 6 months of work.
Only qualitative applications!
That's one of the ways we add value: By saving you time! We've spent years building this DB of investors and we keep it up-to-date. And because we only call upon those investors for qualitative applications they know that we send them good ones, so they read our emails with interest! It's easy to see how assistance from Super Capital when raising €500k from Business Angels can be helpful... But it's also true for raising €1m from Business Angels plus a "small", little-known venture capital fund, for instance. Because although it's easy to identify the top 20 or 30 VC funds in Paris, London, or Berlin, it's harder to find dozens of small private funds scattered across European cities that can invest hundreds of millions of euros at a time...
Post-seed Angel fundraising is exactly when you need help!
In the end, contrary to popular belief that you absolutely must have assistance when getting Series A funding from VCs but it's optional for post-seed or pre-Series A funding from Angels, we believe the opposite is true! Our advice: Always get guidance during post-seed fundraising from Angels (if only because it's your first time, and also because you don't know 500 Angels!) and raise your "Series A" funding on your own (assuming you've already successfully gotten Angel funding before, otherwise seek assistance ;) ).

All Posts

Almost done…

We just sent you an email. Please click the link in the email to confirm your subscription!