Let’s assume you are pitching to investors. You are in front of them right now! You nailed your pitch, transferred your enthusiasm and thrilled their minds. You get to the very last slide, when you put together the investment proposal. Well, you are probably well prepared on the amount you need to raise. If not, you’d better not even show up to the meeting. But here comes the main point:
You need to have a reasonable range of pre-money valuation! You can’t just shoot the first estimate which pops up in your mind: that’s may be a deal-breaker. You can’t remit the decision to your investors either: how would that look in their eyes? Confidence is the right attitude. No matter how well you know your company, when it comes to valuation you may find yourself on a slippery surface.crowdfunding advertising
To be confident, you shall put together your knowledge of the company, its stage of your business, strengths and weaknesses, potential revenues, and systemically sum up their individual contribution to the overall enterprise value.indiegogo marketing
An exact estimate gives a very good impression of your skills as manager, but it should be matched with a range of variation. Investors want to see you know what you are doing and that you show enough flexibility for negotiations.kickstarter marketing
It’s like when you are about to buy a house: well before hearing the price you create a prince range in your mind and, if the dealer’s ask is within it, then you’ll probably take that option in serious consideration.kickstarter project
Congratulations, now your investment is one step closer! Learning however is not done yet. Stay tuned to understand more about how investors value your startup at early and later stages in our next posts.
Posted from :https://www.equidam.com/after-initial-interest-how-to-ask-investors-for-money/