by Karim Sumar, CEO of EEZ Venture Studio
You’re an entrepreneur. You’ve worked hard to take an idea and turn it into something worthwhile. You’ve put in sweat, tears, blood, soul and much more. You’ve overcome obstacles, challenges, heartbreak and countless failures to get to this point. Now, it’s time for you to raise your first round of funding. Great, now what do you do? Here are a couple of points for you to think about as you plan your growth.
- Make sure you actually NEED the money - don’t raise money for the sake of raising money. Don’t raise money because others are doing it. Don’t raise money because you read a bunch of articles online. Only raise money because it will help you reach a specific goal. If you don’t know what that goal is, you’re not ready to raise funding. Remember: money doesn’t solve problems, money is a tool that helps you solve problems, provided you know what problems need solving.
- Know your investor(s) (KYI)- Not all money is created equal. There are a lot of sources of money out there. What you need is someone, or a group, who will invest in you and support you along the way. They should be able to bring you something more than money. Things like access to their network(s), mentorship, industry experience, and resources to help you grow. The last thing you need is a micromanager who wants to speak to you twice a day for updates and has ‘ideas to share’. Ask them about previous investments, talk to other founders they have invested with and make sure you do your due diligence properly before taking anyones money. Always plan for the long term and do not just jump for the first deal (or cheque) you get.
If you have a great business and you’re confident in its success, investors will always be interested. Finding the right investors at the right time is often more valuable than the money itself.
Karim Sumar is the founder of Canada's first ride-sharing platform and CEO of EEZ Venture Studio. In partnership with Argentum Law, EEZ Venture Studio leverages experience, data and behavioural science to help startups grow and navigate the various stages of fundraising. Whether it's hiring, marketing, or development, EEZ Venture Studio has a team of experienced entrepreneurs that will help you meet your goals and optimize your brand for raising capital successfully.
