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raising seed capital

Raising seed capital: Advice from Gianluca Valentini

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Entrepreneurs who are in the process of raising seed capital are probably dealing with few important questions like: What do investors look for? How can I convince them?

In most cases, only other entrepreneurs that went through the same experience can help. This is why Gianluca Valentini, who successfully raised funds in The Netherlands several times, wants to share his advice on this topic.

Raising seed capital: how and when?

Keeping in mind that efforts may vary according to the geography in which your company is based, and that networking is a fundamental aspect of fundraising, here are few helpful tips to successfully raise seed capital:

1| The two layers of assessments made by investors

Trends and target market

These are very important factors for investors. Is it something inevitable? It will be possible to raise funding also if you are targeting a conservative market, but the amount of effort will probably be lower if you have a company in hyped or trendy markets (as, for example, VR today).

Your competitive advantage

If it is going to happen anyways, are you the company that will take on the market? Show investors that you have a competitive advantage that cannot be copied, superior traction or superior knowledge.

2| Two major deal breakers

Don’t raise too much

Ensure capital for 18 months, and assess your assumptions on costs. While raising too little may make you sound naïve, raising too much is a bigger mistake since it may hurt the trust you are building and question your integrity.

Capital is functional to your business, not vice-versa.

Use capital as a resource, as the last piece of the puzzle, not as a aim of your company at all costs. It is going to be easier to convince investors if they see that they just need to put more fuel on the fire to make it grow, rather than putting the capital to build the engine.

When raising money, you should aim at getting the fuel of your engine, rather than getting the engine.

Did you find this video useful? What was your experience with raising seed capital? Feel free to share in the comments your feedback, experience or suggestions for our next video!

 

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3 Comments on "Raising seed capital: Advice from Gianluca Valentini"


Guest
Evan
2 years 5 months ago

Love the fuel vs. engine analogy. Hope you don’t mind me taking that and using it!

Guest
stephen wright
2 years 6 months ago

thank you for the content, useful confirmations.