Taking fundraising into the digital era: 7 reasons to raise capital online
By James Martin
April 15th, 2020
As the world continues to watch the events of COVID-19 unfold before their eyes, the confinement and lockdown measures have caused major disruption to many face-to-face businesses. However, for the entrepreneurs among us, the opportunity to secure rounds online has never been more fitting. Raising funds is not only a challenging time for founders, but it is incredibly time consuming and, in general, highly inefficient. Securing capital in the traditional sense is binary: either you spend a considerable amount of time traveling and pitching to a potential investor and secure a deal, or you don't, and it's all been for nothing. With this in mind, we present you with the top 7 reasons why entrepreneurs should be raising capital online, not only during this time but for good.
1 - Quick to set up
Establishing your online presence could not be easier with the help of fundraising platforms. At Angels Partners, it takes approximately 10 minutes to set up a profile and 2-3 days for your deck to be reviewed before going live on the platform. So long as you have all your documents, financials, and paperwork in good working order, you can see your company listed on Angels Partners within a few days.
2 - Save time and hassle
Due to the current global pandemic, the days of bounding from meeting to meeting, consuming coffees by the gallon, and presenting your pitch to an array of potential investors, has come to a complete stop. Founders who are used to spending hours trekking to and from meetups can now utilize their time more efficiently, by pushing business development, generating advertising and connecting with many more leads. Moreover, by digitizing all the forms and deal documents, you are saving your investor time and trouble. Via an online portal, in a matter of clicks, they can have all their bank accounts connected to their profile, making sure it's all the more easier to part with their capital.
3 - Connect with like-minded Investors
Instead of raising funds from your immediate network, online platforms provide you with the means of reaching investors who are most excited about your business and who genuinely believe in your project. Thanks to the new Jobs Act, you no longer have to limit your pitch to the richest or most-connected investor. Using an online platform, you can reach any investor, empowering those who care most about your business to invest.
4 - Use the team's combined network
Traditionally, the fundraising efforts are solely in the hands of the CEO/founder, who utilizes their own network of investors. However, by switching online, the entire team can now contribute to the fundraising process. By encouraging your CTO, CMO, and other founding members to post onto their Facebook and LinkedIn profiles, publicizing that you are raising funds, you can establish more exposure when executing the rounds and bring together a team during a time of physical separation.
5 - Make negotiating pain-free
Tired of going around in circles answering the same 30 questions during a negotiation? Well, by stating all your key facts and figures on an online deck, you provide an investor with access to all vital information they will need to give the thumbs up to a deal. By making it clear and concise, you can get right down to business without any faffing.
6 - Build brand fidelity
Invest in those who want to invest in your business: your customers. Creating brand ambassadors from your customer base is a great way to build up brand loyalty and provides an opportunity for your customers to own equity. By financially incentivizing your customers and ambassadors, your success in the market will be far more than you can envision.
7 - Take the lead
It is likely that this global pandemic is not going to pass anytime soon, so don't lounge around waiting for it to end. Be proactive and establish company value online. With platforms such as Angels Partners, you can take control and set the terms that you think are fair. With many frustrated investors also stuck at home, intently listening to the stories of the fluctuating markets, give them something to be excited about and set up your online deck.
If Covid-19 is the catalyst to initiate this switch of fundraising into the digital age, then so be it. Head over to Angels Partners now to set up your company deck and get fundraising!