Find the right investor for your startup

We are continuing our series on “Hacking your fundraising”. We have already written about where to find the investors if you are an early stage startup and what you will need to give and what you should expect to get from your investor. This time you will find out how to decide if you have found the right investor for your startup.  We will focus on angel investors and accelerators, as they are the most common investors in early stage startups.

Human factor

Signing a contract with an investor is a bit like getting married. You will need to start sharing, meet regularly and commit to many things you may not always feel like doing. Although you are marrying rich, don’t forget it’s almost impossible to get a divorce with your investors and having a no-strings-attached relationship is not an option.

Like with any relationship, times might get tough when things are not going as planned – a fairly common issue in Startupville. It is therefore important that the relationship is based on mutual respect and understanding. A great investor will help you brainstorm when things are bad and will stay out of your way when you need the space to figure things out. For that very reason make sure you select your investor carefully and not go for the first one that flashes you the money. How to do it? Do your due diligence. In addition to using Google search, you can and should:

  • For angels: Ask them to put you in touch with a few of their portfolio companies. You should even go as far as selecting the founders you would like to talk to yourself. Try to go for the successful and the ones that did not go well. In the latter case, you are likely to find out more valuable information, because hard times present a better test of anybody. If the angel investor refuses to give you these contacts, this is a clear warning sign. Surprisingly, very few startups do this.
  • For accelerators: Talk to graduates of their programs. The list can be easily found on their websites. Best reaching out directly to the founders through LinkedIn. Simply ask them if they would do the program again. No response from a number of founders may be a warning sign.

Human factor is much more important when you look for an angel investment. In case of accelerators, you will deal with more people and the relationship will be intense for a relatively short period, during the program.

Terms of investment

In general the most heatedly debated terms in a term sheet relate to valuation. However, whilst financial terms are very important, the devil lies in the details, legal details. Investment terms, presented to you by investor in a legal document called term sheet, are a good indication of the relationship you may have in the future. Some things to be especially careful about:

  • Board seats. In general, if you agree to have investors on your board, make sure their vote is in line with the amount of equity they have.
  • Additional equity not linked to amount invested. Sometimes investors will offer non-cash benefits (e.g. mentoring, office, advisory) in exchange for equity. It is a normal practice for accelerators, but need to be checked more carefully when analysing an offer from angels. We wrote more about it in our previous post.
  • Valuation caps. This is an important point when your investor doesn’t get equity, but rather receives a convertible note for their investment. It is a very common practice when funding early stage startups. You can read more about it here.
  • Trigger events and conversion mechanics for a convertible note.
  • Reserved matters – list of really important matters where the investor has veto rights. Common examples include hiring and firing of key staff and raising additional funding. This means that without the investors’ consent the items cannot be approved by the rest of the board even if they form a majority.
  • Anything that looks weird.

The term sheet and related documents will be overwhelming. This is normal, so it’s better to ask and perhaps look stupid than not ask and actually be stupid. If you have questions about the investment terms like: “Why is your fund registered in British Virgin Islands?” or “What does it mean that you want to cap…?” – ASK. If they are honest, they will be understanding, open and not defensive. Remember, the deal will not fail because you ask questions.

Please do not treat the above as legal advice and, if unsure, show your term sheet to an experienced lawyer or another founder, preferably one who has raised capital from professional investors before.

Additional value

One of the things you should be doing your due diligence on, is how much you will get from the investors in addition to money. The most valuable are mentoring and introductions.

Mentoring

Accelerators are all about mentoring and most make the network of available mentors their key value proposition. That’s great, but mentors are not created equal. Study the list carefully and think if you would be excited to work with some of them. Then, while doing your due diligence, find out how much time mentors will actually have for you and how the mentorship works. The best arrangement is to have a small group of mentors work with you consistently through the whole program. Some accelerators (e.g. Techstars) organise mentor-startup speed dating at the very beginning of the program, which is something founders generally like.

Angels can and should offer mentoring too. If your prospective angel investor has already made investments in your space (not in current competitors!) and/or has operational experience running startups, there is a chance their mentoring will be useful.

Introductions

Your investors should help you grow your network of contacts through introductions. This means introducing you to other investors, potential clients, potential hires and anyone who can help you grow your business.

Even if you don’t secure direct introductions to investors from your accelerator or angel investor, you should not hesitate to name-drop to get introduced yourself. Never underestimate the power of brand and social proof, especially that investors, as a group, are famous for having herd mentality. What it means in practice is that when they see another investor already interested in you, they will more likely look at you with more interest themselves. That works even better, if it happens to be a name they already know well.

Thanks for reading and stay tuned for more. In the meantime, we would love to hear from you in the comments below. You can also subscribe to this blog and receive notifications when we publish something new.

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Startup funding – what you get and what you give up

In our previous post we listed the main sources of external financing for early stage startups and where you can find them. Today you will find out what you should be prepared to give in exchange for their money, but also what you should be expecting to get. This is a continuation of our series “Hacking your fundraising”. You can see the whole presentation on that topic embedded at the bottom.

1. FFF – Family, friends and…fools

You get

Unless your friends or relatives are experienced entrepreneurs and can give you relevant business advice, the deal is quite simple – what you get is cash to run your business. On top of it, there is however a non-material bonus included. You will be getting an enthusiastic group of fans of your startup, who will cheer for you and talk about your product to everyone they know.

The amount of money you can get will differ on the number and wealth of FFF you involve, but commonly it will be up to 20k USD.

You give

The easiest arrangement you can make is to take money in a form of a simple loan that you commit to repay, with accrued interest, when you start making money. Another good option is to issue a convertible note, which converts into preferred or common stock at a discount (usually 20 percent, although currently often reduced to 10-15%) to the valuation in the next round, which usually involves professional investors. Granting stock in your company in exchange for the investment is much more complicated and should require involvement from lawyers, which at this early stage can be both expensive and time consuming. In any case, to avoid possible misunderstandings that can harm your relation with your relatives or future funding from professional investors, it is better to sign a legal document.

You need to be aware that there may be additional costs of having your friends or family financing your startup, especially if you don’t reveal to them risks involved, or if they don’t full understand them. If you got money from your relative promising that “this is a sure thing and nothing can go wrong”, in case it does, those family dinners may suddenly become very awkward.

2. Angels

You get

Angels are wealthy people with passion for startups, often being former entrepreneurs themselves. For that reason, in addition to money, you should expect to get valuable insights, helpful advice and contacts to grow your business. That is in fact what angels usually promise as their added value alongside the financial investment. Therefore, when reaching out to angels, focus on ones that actually have contacts or experience in the sector that is relevant to you.

You need to remember however, that in order for their involvement to be useful, your angel investor would need to have time and relevant experience to understand your business really well. That may not be a realistic expectation in many cases.  Angels are very busy as they usually invest alongside their other fulltime commitments such as running their own business. Don’t let that deter you. Keep hustling even after they invest because the non-tangible value is significant and you need to extract it.  Push to arrange regular catch-ups even if it means scheduling several weeks in advance.

Usually, angels invest from USD20-100k, although it may be more if you manage to get an angel group to invest.

You give

In exchange for their investment, angels will want equity or a convertible note, which is a form of debt that converts to equity when pre-defined conditions are met (called “conversion trigger events”). Sometimes angel investors require additional equity in exchange for their advice. If you agree to that, make sure to make granting of equity conditional on them delivering specific results. Otherwise, you risk taking someone on for a free ride. We recommend you use the Founder Institute’s Founder Advisory Template to help you structure the advisory relationship.

Once you have them on board, angels will often require you to send them regular reports about your performance, which means you will need to start sharing details of what you do. Some angels may also require some control of the business, in form of a board seat. It is not a common practice however, so think twice before agreeing to that. It is your business, you take the most risks and you should be the ultimate decision maker. By giving a board seat early on, you also set a precedence for later stage investors to do the same. You also risk that a small investor will have a significant say in the future fundraising rounds. They will push to have their rights protected and their requirements may be in conflict with that of your company, thus negatively impacting your negotiations.

3. Accelerators

You get

In addition to cash investment in your startup, accelerators usually offer office space, access to professional services (e.g. lawyers, accountants) and other business/technical resources such as free or discounted access to servers or various SaaS tools. However, their biggest value-add is supposed to be access to a network of mentors. These are people with relevant business experience, who will work closely with you during your acceleration program to help you grow your business.

Another benefit of accelerators is the connections that startups establish with other entrepreneurs. In each in of the programs there are between 10 and even 60 startups, all in one place and going together through very difficult times. This means that not only professional relationships, but often strong friendships are formed.

Finally, being an alumnus of a well-known accelerator definitely helps with introductions to VC investors, some of whom you might meet at the accelerator’s Demo Day.

You give

Accelerators take equity for their investment and services. It is usually 6-10%, often in a form of a convertible note, although it depends on the country as in some countries it can be significantly higher (20%+)

4. Venture Capital

You get

If you manage to attract VC investors to your early-stage startup, you must be doing a lot of things right. It usually implies you have a good product (usually post MVP) that solves a well-defined problem in a huge market ($1billion+). In addition, VCs look for a talented and balanced team, as well as impressive traction that can translate into hockey stick growth.

As opposed to most angels, VCs are professional investors that do this full-time, so in theory they should be able to give you more valuable advice and make better introductions than other investors. They may also get involved in the operational side of your business, for example by helping you make a high profile hire, analyze a new market opportunity, plan and execute an acquisition or position your company to be acquired by a large player.

VC investors are the ones you go to when you need more than $1m of funding.

 You give

At the early (seed funding) stage you are likely to give away up to 20% of the equity, although many funds, particularly outside of Silicon Valley, would want to take a bigger chunk of the pie. VC funds usually invest more than $500k in a startup, which means they will want some control of your business to make sure you are spending this money on things that help you grow. You can expect them to want to receive regular updates from you and often a board seat.

Remember, with VC investment you are getting a lot of pressure to make it big. They give you rocket fuel for your business and expect you to take them to the moon, then to mars.

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Sources of funding for early-stage startups and where to find them

At Fundacity we want to help connect startups and investors, so we have prepared a presentation to guide startups that are looking for funding. We called it “Hacking your fundraising”. In this blog post we would like to give you some tips about where to look for finance if you are an early stage startup. This means you have at least a team, some form of a validated idea (preferably a Minimum Viable Product) and lots of drive and passion to grow the next big thing!

At this stage your financial needs are probably not that big. Assuming you have technical skills to build your product, you may need money to:

  • Pay basic company expenses like cloud server, non-free software, co-work office space, accountant, etc.
  • Survive: pay your rent, eat and occasionally go out to disconnect (important!)

Even if you can survive for some time from your savings, you will eventually need additional money to keep your business going. There are three main sources of funding for early stage startups:

1. FFF: Family, friends and…fools

The FFF are people who know you well and are ready to support your idea financially, because they believe in you. FFF can be your parents, a rich uncle, or a successful/wealthy best friend. Getting money from them is also a very important first test for you. If you manage to get money from FFF, it should be easier to raise money later.

The amounts will be small (unless your uncle is very rich and not that smart), but good for a start. It is probably best to take money as a loan and not formalize too much. This funding is 100% based on trust, so they know you will repay them nicely when you become the next big thing. Common mistakes here are giving too much equity (10%+) for a non-active role, including non-dilutive rights or agreeing to pay monthly cash interest which is tricky for a growth stage company.

2. Angels

Angels are a bit like FFF in the sense they are individuals with some disposable income who are ready to make a bet on you. The difference is that you probably don’t know them yet. Angels are often former entrepreneurs, who like helping build new businesses. They may also be wealthy people who like startups and want to invest in something with a big potential to diversify their investment portfolio. The important thing is that they are also prepared and can afford to lose this money.

There are several ways to find angels:

  • Angels like to form groups, so check online if there is one in your area. For example in Brazil you have Anjos do Brasil, Angel Ventures Mexico in… Mexico, or Tech Coast Angels in the US.
  • Many will have a formal way to be contacted, through website. For example, Juan Martin from Club de Business Angels de IAE in Argentina told us that startups can contact him directly through their website. He will review the idea, ask for additional information if your business seems interesting and then present the business to the other angel group members.
  • Personal introductions are however the most effective ways to get introduced to angels. For that, you need to network with your local startup community. Go to events, talk about your idea with many people, then establish relationships and ask for introductions. The best events to attend are accelerator demo days. They are generally neither costly, nor difficult to attend and angel investors go there to find interesting opportunities. You don’t have to pitch on stage to get a chance to talk to them.
  • Investors usually have LinkedIn or AngelList profile, where you can see what companies they have invested in. This will not only give you information if the angel is the right fit for your startup, but help you find ways to get introduced to them, for example through someone you know in their portfolio startup.

Securing angel investment depends a lot on personal relations and trust you build with them. They need to believe in your idea and that you are the right person to deliver it. For that reason you cannot expect that securing investment will be a fast process. It can be however really worthwhile as many investors can offer valuable advice in addition to money. Speaking about money, angels will invest typically up to $100k in exchange for equity in your business.

3. Accelerators

Accelerators invest in early stage startups not only by providing money, but, more importantly, by offering valuable services (mentoring, work space and contacts).

The way they work is by inviting startups to participate in short programs, which usually last a minimum of three months and require you to relocate to their offices.  During that time you not only work hard on your business, but go through a structured program of workshops and meetings with mentors. The idea is that in this short time they will help you, well… accelerate your business, by teaching you essential skills and advising you on your business model.

In return for their services and cash (usually around $20k, some offer more), you will have to give up a small amount of equity (6 to 9%).

How can you find accelerators and incubators in your area? The most famous accelerators are in the US, such as Techstars, 500 startups or Y-Combinator. In Europe you have Seedcamp, in Latin America Nxtp.Labs, Aceleratech or 21212 in Asia JFDI, etc. You can look for them on Fundacity or AngelList. All of them can be easily contacted online, some take applications all year round.

4. Others

There are a number of other options you can consider looking for funding.

Venture Capital firms usually do not look for early stage startups, unless you have a rockstar team, previous relevant experience and a product that already has some good results – impressive user growth in a big market is the best.

Take a look at government programs, grants or loans such as CORFO fund in Chile and Startup Brasil. There are also various funds provided for entrepreneurs by the European Union if you happen to do business in one of the EU member states. However be aware that government grants often come with lots of headaches as you need to report your plans and later expenses very diligently and there is little flexibility to pivot your business. However, it is worth investigating them as conditions for some are really attractive (cheap or free money).

Crowdfunding is a good option to get not only funding, but also help to promote your product by your backers or investors. The most popular type of crowdfunding is when people give you money to build a product and then you usually offer them this product on attractive conditions (or for free) once it’s ready. For obvious reasons it works best for consumer products that people can actually buy and use themselves. It is much more difficult, if unheard of, to crowdsource e.g. an enterprise SaaS solution this way.

The most popular sites to get funded by people this way are Kickstarter and Indiegogo. Another option for startups is equity crowdfunding, where sites like AngelList or Seedrs can help you find many small investors who pool their money to fund your business in exchange, you probably already guessed it, equity.

 

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Fundraising and Startups in Chile Part 2

….following on from Part 1… Internationally, Chile’s tech scene is thought to mainly consist of Startup Chile. However, I discovered there is more to Chilecon Valley than meets the eye. Arriving in Chile, I was bewildered at the multitude of incubators, accelerators, co-works and tech events that this relatively small country has to offer. Almost every university now has an incubator or accelerator. Co-works are sprouting across Santiago. There are several tech events every week in Chile. 5 years ago tech Chile virtually did not exist. The high growth rate in the ecosystem can be seen and felt even over the short time I lived in Santiago. The environment has been expanding massively.

The ecosystem is not without its problems though. There is a lack of angel and VC money to followup the incubator seed cash. Thus startups usually use capital to flock to the US and establish and fundraise there. Failure often means they join the so-called Latin American Zombies.

Angel funding in Chile is scarce but not absent. There are two prominent angel groups Southern Angels and Chile Global Angels. Their members are moderately active. Chile Global Angels, with 27 members, has screened 400+ startups, funded 13 startups and allocated $1.8m over 4 years. By Silicon Valley standards this is miniscule. What the ecosystem needs is more entrepreneur turned investors that have successful exists behind them. This requires time but Chile is heading in the right direction and must, as prominent startup guru Brad Feld preaches, take a 20-year view from today.

Venture Capital is its infancy and heavily reliant on Corfo support. There are roughly 4 active VCs. One of the most active VC, Aurus, has made roughly 10 deals and the fund size is 30m. The reasons for this is probably the lack of institutional investment into this asset class. This is hard to change in the short run as capital is controlled by a wealthy subset of Chileans and they are conservative since their wealth derives from traditional assets such as commodities and real estate. On this front one can observe moderate change as the younger generation from these families is drawn by the trendiness of the startup world and even the Old Guard is showing interest.

Probably the greatest allure of Chile is its stable and strong economy that is growing in a steady and organized manner. Corruption levels are amongst the lowest in LatAm and the government and lobbies such as ASECH, are improving the business and legal environment removing the layers of bureaucracy that typically make starting up a painful process in LatAm. Recent victories include free incorporation and ability to incorporate your business in 1 day.

Whilst Chile is no cheap place to live it is significantly cheaper than US or European tech hubs and tech labor costs are significantly lower. Engineering talent can cost as little as $1,500 per month. In San Francisco, it can cost a minimum of $6,000 per month to hire an engineer if you can even find one at all. However, the downside is that Chileans are less likely to know what a startup is and are usually highly risk averse. Thus it will take a lot more effort to recruit a quality team.

So is it all hunky dory? Looking closer at the fundamentals that this young and vibrant ecosystem is built on, one soon discovers that there is a single prominent fertilizer nurturing this rainforest. Corfo – the government body, which is mandated with promoting entrepreneurship and innovation in Chile. Corfo for the time being is the life support that all noteworthy incubators, accelerates, VC and events rely on. At present, absent this, the ecosystem would likely fall to pieces like a deck of cards. The upcoming election in Chile is causing some unease regarding the continuity of the program which was implemented by the current ruling party.

Another issue is the lack of smart money. Whilst Corfo cash is fantastic it is not yet accompanied by professional mentoring. Incubators and accelerators manage the funds on behalf of Corfo. However some say that they do little but select and allocate third party capital. This is falsely creating influential ‘investors personalities’ in the community that lack a significant investor or entrepreneurial track record. The lack of sufficient skin in the game is not sustainable and Corfo is aiming to change that over the next few years.

Chile is doing a great job at attracting fresh talent into the country and laying the foundations for what could be a flourishing and sustainable global tech hub. My advice: one should consider Chile as a place to start-up.

Fundraising and Startups in Chile Part 1

ChileChile, a secluded country that until recently was rarely a topic of discussion especially in the digital tech world, is now attracting a lot of global media attention for its efforts to modernize and become the regions tech hub.

I migrated to Chile to explore what opportunities this young but promising ecosystem had to offer. I reasoned that there are likely to be more opportunities for an entrepreneur in a startup ecosystem that is still in its infancy in a country that is off most people’s radar. This proved to be true. In 10 moths, I met an amazing technical co-founder and we founded Fundacity, raised $170,000, were sponsored by the government for a 5 week mentorship program in Silicon Valley, became a financial advisor to successful Argentine startup Taggify, co-organized one of the first Startup Weekends in Chile, co-organizing the first Junior World Entrepreneurship in Chile and this journey took me on business trips across 4 continents. This, for someone so new to this industry, would not have been possible anywhere else.

Chile’s most prominent initiative is undoubtedly Start-Up Chile. Start-Up Chile is indeed, in my opinion, a success story. $40k non-equity non-loan grants for 100 promising startups handpicked by Silicon Valley experts has attracted the attention of the global tech community and notable news reporters including CNN, Economist and Tech Crunch over the last 2 years. Applications to Start-Up Chile have surged from 300 applications to 1500 from 50+ countries over the past 2 years. The quality of the startups has also followed suit.

20120904-start-up-chile-logo

Support for Startup Chile is not unanimous. Critiques point out that an overwhelming majority leaves Chile after the 6-month program. Whilst this is true it ignores the impact these international innovators make when in Chile. Startup Chile requests that each of its incubatees earn “RVA Points” (Return Value Agenda) which is a mechanism for entrepreneurs to give back by spending time spreading their knowledge in the community through organizing events, workshops, presentations, hackathons and forming communities and groups. Start-Up Chile is artificially creating an ecosystem that is inspiring, enabling and educating Chileans about Start-Ups and bringing this concept closer to home. Chilean entrepreneur Diego Izquierdo, co-founder of Fundacity, told me,

We all thought a startup is only something you can do if you are in the USA.

Fact: this is not the case. Fact: more Chileans today than previously are launching startupsPart 2 to follow

What I learnt in Silicon Valley

The startup ecosystem  in Silicon Valley is exceptional. Talented entrepreneurs, top class lawyers, experienced mentors and savvy investors all within a stone throw coexisting in a tight-knit ecosystem.

Fundraising here is amazing and there is definitely lots of tricks to the trade. Whilst I am no expert on the subject I would like to share with you a couple of broad learning points you should definitely do when fundraising in the Valley.

Talk to people

The Valley is a unique place not just because of the startup talent and experience here but also the willingness of people to give advice. Experienced entrepreneurs and lawyers are great sources for free advice. Veteran entrepreneurs mentor other startups to stay plugged into trending developments of rising startups and to seek advisory roles. Lawyers hold free initial consultations to win clients. Use social networks to find people and ask to meet them. Do your homework and go with specific question to make the most of these meetings.

pitching

In Feb, we had a great meeting with Wilmer Hale, a law firm we now engaged, where I received great insights on where the market is pricing startups at various stages of developments. This greatly increased my ability to sense where the market is at right now and what valuation I should be seeking here. They also gave me specific valuation advice about Fundacity. Remember lawyers see deals all the time and have a great sense of where the market is at. Tap into this knowledge!

Get a plan B

This can never be overemphasize. “The best Plan A has a great Plan B standing behind it. The more potential investors you have interested in your company, the better your negotiating position is. Spend as much time on your best alternative to a negotiated agreement (BATNA) as possible”(1). Also, I strongly suggest you clearly decide what the price point is at which you will walk away from a deal. Never begin a negotiation without that. When walking away also be transparent and communicative about that point to help the other party understand. In this way, if possible and meant to be, the other party will understand your stance and can still make it work. Don’t rush the process. Enjoy the thrill of the brewing deal. Never forget to consider the option of falling back on sweat equity and bootstrapping a little longer until the time and the price is right.

Value value value

The deal terms are driven by many factors but fundamentally it is the value your product/service is hoping to create. Focus on creating real benefits to your target users. Benefits not features. Understand your user and get the value proposition straight. In the end of the day this is what earns the prize.

Some useful books I can recommend for some background reading are:

1-Venture Deals by Brad Feld and Jason Mendelson (great read with some good fundamentals. I particularly like the “entrepreneurs perspective” at the end of each section. You can flip through this over a weekend)

2. Term Sheets & Valuations: A line by Look at the Intricacies of Term Sheets & Valuations by Bigwig Briefs (Very technical book. More dry  than Venture Deals but definitely gives you lots of answers)

3. The Business of Venture Capital by Wiley Finance (more about VC than about a startup raising funds. However understanding how VCs function is a great way to understand your negotiation partner)

 

Good luck fellow hustlin’ entrepreneurs!

 

Miklos Grof

Co-founder @ Fundacity and hungry entrepreneur

Startup Fundraising and Social Media – Let’s make some NOISE!

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

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!