The basics of raising funds
In this video about raising funds, Laurent Kratz shares his views on the following topics:
- steps for raisings funds
- what helps
- how to approach fund-raiser
- how many meetings
Laurent Kratz has founded several companies, including lesfrontaliers.lu, Jamendo, Neofacto and Scorechain. He is also a business angel. Find him on www.neofacto.com.
Subtitles are available in english and french.
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Bookworm? Read the transcript!
What are the steps?
Each step can… there’s no obligation can potentially call for fund-raising because to get to the next level you need financing. When you have the slides, it’s called the seed round, then it can be the A Series when you get to the project with a client “zero,” let’s say. After that it’s the B Series when you go out to conquer the world.
It’s about network. You might say “I have the best project in the world, all the lights are green” but if you don’t know anyone… Yes, there are deal-flows for well-known funders and you can get picked, but it’s still very… at least for business angels it’s absolutely about network. You have to know people. You need a proven track record, have to reassure them, etc. And even for A Series and B Series with VCs, a lot of it goes on through the network.
With a fund-raiser ?
Since things go through the network there are two options: either I have a network, or I buy one. How do you buy one? There are fund-raisers. It’s straightforward enough… surprisingly enough, if the fund-raiser is good, you’ll need to convince them. Because they’ll only take you on in their fund-raising activity if they’re sure, cause they don’t want to work for nothing even if they have a retainer. They’ll only take you if the project it their mind has a shot at success.
How many meetings?
Probably at least 9 no’s for 1 yes just for the meeting and obviously in 10 meetings, it’ll be… maybe one due deal or a letter so it takes 100 meetings! It can be a tiring process, very tiring.