Series B
When a new startup approaches businesses for funding, they have a blank slate with hopes and dreams to prove. All they have to do is sell the investor on their idea and its financial viability. But what happens when an entrepreneur runs that same company and then approaches investors for a Series B of funding.
“Medium-sized companies aren't starting from a blank slate; they come into those meetings with baggage," says Charlotte Brown, CEO of Adelie Ventures, a growth strategy consulting firm with offices in Honolulu, Chicago and London. The most important thing to remember here is that before giving you any money for new endeavors, investors will expect that you've delivered on what you previously set out to do. Every business faces challenges, investors want to know how your team has overcome the ones faced since you started.
Another thing that most people don’t see coming is that growth round investors want to talk to customers. So, prepare in advance and have customers ready to talk to investors. Other important lessons to keep in mind are to have all the metrics as requested and a clear vision for the future of your company. Lastly, the most important rule of thumb, is to only fundraise when you’ve achieved the goals you set for the previous round and to make the investors feel like they’ll be missing out on a huge profit potential if they don’t get in at this round.
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