First time start-up fundraisers make their share of mistakes and yes, it is not just you but many of them who are giants today have had made many mistakes during their first times. But when you have ample of opportunities to learn and not to make any mistakes even as a first timer then why loose opportunities at all? Learn from their hard earned lessons and spare yourself from making ‘the fundraising mistakes‘. Here are 5 tips just for you:

1) Alex Mittal gives some powerful insights on fund raising why’s and how’s-

In one of his recent blog posts, Alex discusses the how about’s of fundraising for the first time start-ups.  The first and foremost thing he advises is “Before fundraising, consider not fundraising”. The pressure of making profits and delivering results quick enough to return $10 to the investor for $1 proposition is not good in the beginning. Considering the fact that starting a business or a venture these days is cost effective, Alex makes sense in raising initial amount from family, friends and friends of friends. Another way of getting the funds is from university entrepreneurial grants programs. The thing is raise as little money as possible at first and stay away from the so called Angel Investors and VC’s so that you build your business model according to your views and study rather than they advising you on what is to be done and what not.

2) Michael Skok says “Raising money is like sex”-

Giving some powerful tips on raising funds for start-ups, Michael says- either do not raise money till you have resources to hold it or raise money when you are brand new which at that point is attractive for Venture Capitalists. It is important to solve a problem or meet a need so validation before raising seed fund is absolute necessary.

3) Rick Perreault gives handy tips for success on Angle List-

Pitch video, your road to success- As the whole web is talking about the visual presence, it is a good idea to make a video of yourself pitching and upload it on Youtube. A pitch video could come in handy for your meetings with investors. Create your profile on sites like AngleList and upload your video so you instantly grab your potential Angle investors. Ask for endorsements, comments and profile shares from influencing personalities you know. As you are likely to get dozens of calls form investors on Angle List, it essential to maintain a spreadsheet with contact details, link to the investors Angle List profile, even the rating to the investors to make a good match as a investor for your business.

4) Charles Moldow talks on great pitches to VC’s-

The winning pitch will have precise and to the point concept of company. Anybody who succeed to tell what their company is about in one sentence will surely get what they deserve. Any VC will look for clear answers on what their company is about, why is it important and what they look to solve. Mere presenting an idea is not enough but selling it to the investor is what makes the difference.

5) As seen in the source, the emphasis is on closing date-

Closing date is important in businesses where the amount is huge and the interest even per week is substantial. There might be cases where the investor might delay in releasing funds. The closing date is important but it is equally important to keep the closing date clause flexible enough in the legal documentation to stretch for few weeks even after the closing date.

Fundraising for start-ups looks so much essential but the reality is it all depends upon your business requirements. Before moving on to raise funds make sure if you actually need it or even if you need how much? It is always good to start off with what you have and then show the real potential to attract VCs.