Stone & Chalk launches Capital Raising Guide for startups
Capital raising can be a difficult and intimidating part of starting and scaling your business, but there’s no doubt that in many cases it can be crucial to success. In the context of an impending global recession, it’s especially important to have a thorough understanding of the capital raising landscape, including what options are available, and what to expect through the process.
To help demystify the process, pitfalls and promises of capital raising, we have worked with our partners including ASX, Reinventure, NAB Ventures, One Ventures, and many more, to put together the Stone & Chalk Capital Raising Guide for Startups. The guide, available for free download HERE, contains everything you need to know. It explains funding stages, valuations, pitching, as well as a valuable list of online resources. The guide isn’t just limited to VC raising, either, but runs through crowdfunding, IPOs, government initiatives, and other key concepts.
In the foreword, the guide also includes some useful general information about how to survive and lead through the Covid-19 crisis, including balancing short-term focus with long-term vision and refining your pitch for the current environment.
To mark the launch of the Capital Raising Guide, Stone & Chalk invited experts from leading Venture Capital funds to answer the most frequently asked capital raising questions and discuss how startups can and should adapt their strategy in response to current economic conditions.
Moderated by Cheryl Mack, our Head of Community, the panellists were Simon Cant - Co-founder and Managing Partner at Reinventure; Michael Dovey - General Partner, IAG Firemark Ventures; Andrea Gardiner - Founder and CEO, Jelix Ventures; and Chris Quirk - Investment Manager, rampersand. Startups are currently in a position where financial decisions matter more than ever and are also harder to make. Our panel complemented the Capital Raising Guide well by addressing these timely issues with practical advice. Watch the recording below!
The webinar covered some tips on how and when to connect to VCs. The consensus among our panellists was that it’s never too early to get in touch with VCs to start relationship-building. Even before you’re ready to raise, or when you’re too early to be of interest to most VCs, it’s best to start the process of letting them know who you are and what you’re building. Even Andrea, who as an angel, invests in startups much earlier than most, says that she rarely invests in a startup whose founder she has known for less than a year.
That being said, the way you create a relationship with a VC is also very important. Simon recommends against the “spray and pray” approach, which is too generic and comes off as spam. Instead, it’s best to get intros from people who are already connected with the VC. For example, through founders already in a VC’s portfolio. It’s also important to research a VC before approaching them, to learn a bit about who they are and what they usually invest in, to determine whether they’d be a good fit.
To learn more valuable tips about capital raising, check out the Capital Raising Guide HERE and watch the webinar below:
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