6 Things Your Competitor Can Teach You About Raising Funding
Before you can grow your startup, you have to get funding and looking at your competitors for insight is a great place to start. In fact, you can become better at running your startup, raising funding and communicating with investors just by taking a cue from your competitors and asking the right questions. Here are six key aspects of raising funding successfully you can learn from your competitors:
1. Leveraging Unique Funding Sources
Observe how your competitors fund their companies fast. Many of today's startups tap into unique funding sources to raise funds, such as crowdfunding sites. Leveraging unconventional funding sources reduce your need for traditional funding sources and increase your level of control over your operation.
2. Necessary Funding Amounts
Access to capital requires understanding typical ranges for procuring funding so you're not deterring investors. Observe how much funds your competitor requires for its startup. This key figure provides a benchmark for the amount of funding you should request from investors.
3. Attracting Beta Customers
From Kickstarter campaigns to crowdfunding sites, your competitors can clue you in on how to attract a viable customer base. Investors need to see sales and product interest, which your "beta" customers or first adopters can help you with. Thus, it's beneficial to observe your competitors tactics for getting these customers.
4. Investor Day Performance
Attend an investor day and pay attention to your competitor's performance. It's an opportunity to prepare for the types of questions your investors may ask, including questions about your startup's growth outlook and profitability.
5. Pitch Perfection
Find out how your competitors perfect their pitch by paying attention to their elevator pitches in their crowdfunding profiles. Also, notice the tactics they use at local investor fundraising competitions and accelerator demo days, such as how they explain the company's unique product or service offering.
6. Streamlining Investor Reporting
Communicating with investors regular about your investor reports is a key part of building trust with your investors. That's why when you're creating your first investor report, it's critical to ensure it's as accurate as possible. Notice and ask about the tactics and tools your competitors use to streamline the investor reporting process. You can also leverage tools to make investor reporting simple and integrate your key performance indicators (KPIs) and other important company metrics, such as Rundit.
Raising funds for your startup doesn't have to be complicated. Make your mission simple by observing your competitors' tactics for raising funds successfully. By paying attention to your competitors' tactics, you can improve your chances of raising funding successfully.