Adversity can be the greatest impetus for emerging businesses, not funding. Those who face it with resilience and agility will thrive, even in the most challenging of situations.
Consider the 2008 financial crisis. When the sky was falling, the major players in today’s economy were only just getting started. AirBnb, Uber, and WhatsApp were founded in the aftermath. These companies succeeded because they continued to evolve in the digital network society.
These times aren’t much different. The COVID-19 Pandemic has resulted in an ongoing global recession, and the economy seems less than hospitable to newcomers. But similarly, the current environment presents a unique opportunity for success, if approached the right way.
That is what the World Economic Forum echoed in a recent report that we, at Atomic 47 Labs, came across.
“Tech-savvy individuals must embrace the current climate of digitalization, remembering that several of today’s unicorns were founded during or right after the last financial crisis,” the report stated.
In that sense, today’s startups must tactfully approach their business strategies, especially how they decide to get funded. However, before attempting to pitch for capital, there are a number of considerations that entrepreneurs should be making to ensure a successful funding round.
Here are 3 steps that startups can take to secure funding during the COVID-19 era.
PINPOINT YOUR TARGET INVESTOR
To secure funding, it is paramount that a startup identify its ideal investor.
Establish what your startup’s mission and vision are, and look for investors that resonate with your company’s values. From there, ask yourself: Would your startup’s mission resonate better with an angel investor or a venture capitalist? It is crucial to explore and understand the different niches of potential investors out there, and then pinpoint the right funding approach that works for your business. However, keep in mind that before looking for the ideal investor, it is important to establish “Why” you are seeking funding.
PERFECT YOUR ELEVATOR PITCH
Now that you’ve established who your ideal investor is, it is important to approach them with an effective pitch to persuade them to fund your business. In crafting your pitch, outline the main concepts that speak to your target audience and summarize them. As an exercise, try to narrow down your idea to one sentence. Understand the main pain point(s) your business is addressing and what value-add it provides.
EXPLORE ALTERNATIVE PLATFORMS
Securing capital does not need to come from one source.
Start with your network of family, friends and professional contacts. From there, you can explore alternative platforms. Crowdfunding is, by no means, a new concept. Reaching out to communities and individuals for small contributions is an age-old practice, however, it has become more easily accessible thanks to technology. In recent years, platforms like GoFundMe, Kickstarter, and Indiegogo have made it possible for projects to get funding at various stages. Consider exploring one of these outlets to pitch your startup to both your ideal investor as well as the general public.
Looking to grow your business in these uncertain times? Book a free consultation with Atomic 47 today to get the solutions you need to scale your business.