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Finding the right investors for a startup is difficult and a critical stage for any startup — even the smallest amounts of capital could prove to make a difference. These initial investors in the growth process of a startup will prove to have an impact that resounds for years to come, be it through capital, advice, or connections. Thus, knowing how important this stage is, here at VenturX, we have simplified the process into five of the most important steps to follow in order to find that perfect investor.
Invest in Yourself and Create a Cap Table
To begin, let’s start with personal finances: are you confident that your startup can be financially sufficient? If so, then the first step is to begin investing in yourself, or “bootstrapping.” Invest in yourself, your knowledge, and your health, and as Paul Clitheroe, founding director of InvestSMART says, “Your career is the engine of your wealth.” Many successful businessmen or businesswomen of today understand that enhancing one’s own skills and abilities are necessary to survive in an economy that is constantly changing.
Another key step before beginning to raise external capital is to plan a capitalization table. With reference to our article, “All You Need to Know About Capitalization Tables,” this is “a spreadsheet for an…
