How to raise seed funding

To raise seed funding, you need to perform market research, develop a business plan, and create a pitch. Here are some details on these steps and others you can take to raise seed funding:

• Perform market research

To find the right niche for your business you should do a fair amount of market research. Understanding your competition and who they serve is essential to convincing investors that your business is a safe bet.

• Develop a business plan

Your business plan should cover some of your market research, including customer research, competitors, a startup budget, and financial projections for your business. Other things you should list out on your business plan include:

• The problems you will be solving for clients and customers

• What sets your business apart from the competition

• The resources your business will depend upon

• Your business' mission statement and vision

The more detailed and compelling your business plan is, the more likely you will be able to persuade investors to participate in seed funding.

• Create a pitch

To attract investors, you must craft a strong and compelling pitch on why investing in your company is a smart and great opportunity that can't be passed up. You should create a synopsized version, or elevator pitch, that you can use to grab people's attention, and then also create a detailed presentation. Common information contained in a pitch includes:

• Your company's mission statement

• Your company's value statement

• Your company's vision statement

• Target market or markets

• Financial forecasts and current sales figures

• Marketing campaigns and other strategies

• The leadership team of your organization and their backgrounds

This can cause investors to inquire further into your business strategies and goals, opening a dialogue that brings you one step closer to receiving an investment.

• Reach out to investors

Once you are prepared, you should begin to reach out to angel investors and other possible sources. A good starting strategy is to begin with your own professional network. Ask professional colleagues if they have any good leads on angel investors. If you happen to have a strong relationship with a potential investor, you should leverage it. Other strategies include:

• Attending industry-related events

• Reaching out via social media

• Contact investment groups directly via email

Don't get discouraged, finding an investor for seed funding can take time in some cases.

If you are able to gain some interest from investors, schedule meetings where you can give them the long version of your pitch. Before the meeting, you should:

• Do a lot of research on potential investors

• Find out what other companies they are investing in

• Look for the business attributes they seem to gravitate towards

Get to your meeting with the potential angel investor early, punctuality is key. Remain professional, friendly, and engaging during your pitch and hopefully the question and answer (QA) session that follows. Remember, that this could be the start of a professional relationship where you might be sharing ownership of your company.