fundraising
How do we best position our seemingly slow growth to investors in order to raise our seed?
By
June 27, 2023
To get the attention of investors at the seed stage, and in particular for BeB SaaS companies, it's best to get some kind of big traction.
This is obviously easier said than done. But if possible, try to aim for one of these things:
The first is to consider closing an enterprise client before you fundraise a big round. That sale shows investors that you can execute and the business is derisked and will vastly differentiate you from the “wantrepreneurs.”
If you can’t land a client, there are still two things you can do to show progress.
- Show what your pipeline looks like. If you can show that you’re in active discussions with prospective clients, that’s a fantastic start.
- Collect letters of intent. This is essentially an IOU – the customer isn’t paying you yet, but they’ve committed on paper to doing a pilot with your startup once the tech is ready.
This might sound performative since the offer is not technically binding. But having letters of intent gives investors strong signals that you’ll be able to move the needle on your sales metrics soon.
Now all you need is capital to hire the rest of your team, finish building your product, and close the other clients. Easy peasy.