Five Fundraising Tips for Canadian Startups

Yesterday I talked through the funding landscape in Canada, but a commentary on the space isn’t immediately helpful for most entrepreneurs.

I want to share some lessons we learned at Top Hat Monocle when raising our Series A, particularly for those of you who are looking to include a US investor in your round.

1. Build something awesome (that somebody wants).

This kind of goes without saying, but I’ll say it. The easiest way to get someone’s attention is with traction.

We had a relatively smooth time raising our Series A, mainly because our cofounders had built a product which kicked ass, then found a group of customers who wanted it really badly. From there, it was just about telling the right people about the company and offering them the chance to be part of it.

2. Do your research ahead of time.

I wish I had done more of this before we started. We took almost any meeting we could get and wound up meeting with almost 75 investors—around 50 of whom weren’t a good fit at the time. Get to know the stage, industry, portfolio and preferences of the VC partners before requesting an intro.

We spent a lot of time pitching ed-tech VCs when we should have been pitching SaaS investors. When we eventually started taking the right meetings, it was like we were speaking the same language for the first time and everything went smoothly.

3. Take something away from every meeting.

No matter how much research you do, you’ll always end up in a meeting where there isn’t a fit. Take this opportunity to learn, practice, try something new, or just have a free-flowing discussion.

Don’t force the pitch if it doesn’t make sense. One of my favorite meetings was with a well-known VC where within the first five minutes we both knew this round wouldn’t be a fit. Instead of forcing things, we just spent the rest of the meeting spitballing on how big Top Hat Monocle could really be, and how we could get there.

We came up with a lot of great ideas which made their way into our subsequent pitches, and into our overall strategy. We still have a great relationship with the investor and keep in touch on a regular basis.

4. Start building relationships early.

Well before you need to raise money, get to know as many entrepreneurs and investors in your space as you can. Figure out what they need and how you can help them.

Here’s a hint: entrepreneurs are always looking for great talent, investors are always looking for great deal-flow. Honestly, I remember everyone who has referred me a great hire, and I’ll do anything I can for them for the rest of my career. Local startup events and communities like the C100 are a great place to start building your network.

5. Use the distance as your ally.

Canadian entrepreneurs often complain that their relationships with investors aren’t as good because they’re so far away. Though it’s true that you’re less likely to meet Jeff Clavier or Ron Conway at a party in Canada, being a bit removed does give you an advantage—you can control the timing of your meetings.

One of the biggest challenges during the fundraising process is getting all of your prospective investors on the same timeline. When you’re from out of town, this is just built into your process (“I’m in town for 3 days taking partner meetings—are you guys still interested?”). This can be a powerful forcing function, creating scarcity and avoiding last-minute cancellations, which are a huge frustration for founders.

If an investor knows that missing a meeting means they might not see you for a month, or might have to fly to Winnipeg in February to meet, they’re going to do whatever they can to make it.

Article Written By: Andrew D'Souza. Originally posted: http://www.techvibes.com/blog/five-fundraising-tips-for-canadian-startups-2013-02-20

Don't Be Alone When You Own

So often, women who start their own businesses, no matter how small, find themselves isolated in their decision.  Family and friends don’t seem to understand the time, commitment and all-consuming passion that is needed to succeed in the world of commerce and feel that pursuing a profession would be a much more honorable and financially beneficial undertaking.

That can make your business choices somewhat lonely and for those determined to succeed, means you must be even more focused on achieving your goals, despite the opposition you may feel or worse, total denial by loved ones of the path you have chosen for yourself. It is hard when those nearest and dearest don’t get what you have decided to do and where you have chosen to focus your energies.

Not only does it make it difficult to share your challenges, but there seems little interest in anything to do with your business, to the point that you don’t talk about it, which is hard when that is where you spend all your time and energy. It is almost as if you don’t exist. Bottom line, you have to rely on yourself – which is not necessarily a bad thing -  because at the end of the day, the only person who truly cares about what you do, should be you.

Here’s a few pointers to overcome that sense that you are alone.

• ·      Surround yourself with people who do believe in you.
• ·      Connect with other women who are on similar paths, as you can support each other.
• ·      Stay focused on what you want to achieve.
• ·      Build a network of business owners with whom you can work and form business alliances.
• ·      Develop affirmations and repeat them daily so you start to believe in your own potential.

Because, if you don’t believe in yourself, how can you expect others to do so?  All of us have times of self-doubt when we question our sanity and ability to achieve the goals we have set for ourselves. 

But you don’t have to go it alone.

Article Written By: Anne Day, Company of Women. Originally posted on: http://companyofwomen.blogspot.ca/