When it comes to fundraising, finding the right investors to back your startup is key. This is true for nearly all early stage companies looking for capital, but when it comes to impact companies, finding the right financial partners is even more important. Not only do you want investors who see the financial opportunity of your impact company, you want investors who truly believe in your mission. And as we’ve highlighted in our “Spectrum of Impact Investing” post, investing philosophies vary greatly among impact investors. Despite this delicate dance, there are a few things every social entrepreneur can do prepare for fundraising. Impact Engine’s chief investment officer, Tasha Seitz, and chairman, Chuck Templeton, put together a some tips for preparing for and managing your conversations with potential impact investors.
1. Be ready. The best time to raise money is when you have a strong case to make: have some traction and proof points around customer demand, willingness to pay, business model, etc. Bootstrap and conserve your cash until you have those proof points. Bring together a team that can execute, and get stuff done before you start talking to investors.
2. Be prepared. Be able to explain your market opportunity, how your business works, and your unique (preferably) value proposition. In addition, impact investors will want to know what the potential for social or environmental impact is and how you intend to measure it. Come to the conversation with a clear outline of what you’ve done so far to build the business and how much you need to raise to reach the next set of key milestones. Also spend some time thinking […]