At Fundacity, we were fundraising from almost the very beginning…some 7 months now. We did fundraising with government grants, incubators and angel investors in Silicon Valley, Chile, Argentina and Brazil. We are learning as we are going.
Something I noticed is how important market chatter is. From Silicon Valley to Santiago it is apparent that investors often discus what they hear in the market. Becoming a topic of discussion helps put you on the map. Social media marketing, SMM, can help make you the discussion point during a meeting in Palo Alto.
SMM is pivotal to share information about your ventures and to generate buzz. Entrepreneurs are using Twitter, LinkedIn, Facebook and Startup platforms to contact angels and the wider community. This is a fantastic way to indirectly get the attention of investors who listen to what is going on in the markets they care about. Use online platforms such as Fundacity, Angel List and Crunchbase to share your profile page with the ecosystem and to interact with others.
What do investor’s care about when they look at your social media presence?
With web based companies that are community dependent, investors, as part of their due diligence, review the social media presence, engagement and impact For example, they will look at how relevant and unique your messages are, who your followers are and how the community is responding to you. Like with everything else, investors will look at the evolution of your social media efforts. They will want to see development and consistency. The article “Investing in lines not dots‘ comes to mind.
What are some best practices with your Fundacity profile?
1. You only get one chance at making a first impression – put energy and passion into your profile the way you would with a pitch.
2. Careful with grammer and spelling – investors tend to be very critical when it comes to this. They see 1000s of startups and are often looking for signs that suggest the entrepreneur is not committed.
3. Fundamentals matter – startup investors whether online or in person still look for the same things – strong team, clear business model, a differentiated product that targets a sufficiently large market, consistent development, traction etc so put some thought into your profile before sharing it!
4. Create an awesome and clear pitch video – pictures may be worth a thousand words but a kickass video is worth a million. Speaking to Claudio Barahona from Wayra Chile, we learnt that one of the first things he looks at is the pitch video, so having material that effectively tells your story can really increase your investor traction.
5. Build a strong team – Every startup investor we interviewed said the same…they look for a well-balanced team (technical + business). Invite your team members to your profile page to show investors that you got the goods.
6. Get mentors and advisors – these guys are your wing men that can help open doors and guide you on what often feels like an uphill battle. Add your mentors and advisors to your profile to show investors that your have experienced people supporting you.
7. Share your profile – The Fundacity profile is laid out to contain the information investors look for in a design friendly way. Its your ultimate startup resume to show your rock solid startup. Share it with investors and ask experienced players in your industry to share it as well.
Time to make some NOISE!