Raising capital with an advisory board

[View this email in your browser]( • [Forward to a Friend]( Form an Advisory Board to help Raise Capital TL;DR: "I'm thinking about raising capital but I don't know where to start. How do I start building a network of people who can help make introductions to investors and guide me through the process?" Capital raising isn't about pitching investors, it's about getting in front of them to begin with. But how do we get introductions from investors if we don't know any? We start with forming an Advisory Board. The suggestion here isn't to form an Advisory Board specifically for raising capital — since there are a ton of benefits to having an Advisory Board. However, as a first step toward raising capital, it makes a ton of sense to surround ourselves with smart, well-connected people who believe in our product but also have been through the very gauntlet we're entering into. In the same way we'd hire a dev team to build an app, why wouldn't we round up a team of smart, well-connected Advisors to build our capital raise? We don't need to be shy about the ask, either. Good Advisors, many of whom were Founders themselves, can fully appreciate the fact that signing on board means providing meaningful help throughout the capital-raising process. Today’s Advice Sponsored by [Zendesk]( Advisors Create Important Social Proof Our advisors establish a certain amount of credibility and validation about not just our company, but to us as Founders. It's generally understood that if a well-known and respected member joins our Board, they are willing to invest their name and social capital to our cause. That's incredibly important in the formative stages of raising capital, where we're getting introductions to people who have never met us before but need to trust a ton of money with us on very little history. The assumption from investors is that if this person thinks we're legit, there must be a reason, and at the very least it's worth looking into. We simply can't replicate that social proof ourselves — we need others to provide the testimony. Advisors' Networks become Our Networks We're all inherently limited with our networks, and for many newly minted Founders, our networks simply don't involve investors (why would they?). That's where our Advisors become invaluable. Well-picked Advisors tend to have a deep network of existing investors who have likely worked with them in the past and will trust their recommendations. Any experienced Advisor understands that joining an Advisory Board implies making introductions, and most will willingly do so. Therefore, each Advisor we add exponentially increases the number of potential investors we can be properly introduced to, with the added bonus that the Advisor can give us valuable insight as to what their hot buttons might be. Advisors Often Become Investors Not surprisingly, early Advisors often become investors in our startups themselves. If they are going to take the time and energy to help us grow (if they really believe in the concept) why not also invest? In my experience, it's best to leave that decision to the Advisors, and not make it a "pay to play" type option since that doesn't always ensure we're getting the best Advisors (anyone can write a check, it doesn't make them a great Advisor). But if we're going to take a first step toward raising capital, the best bet is always going to be to surround ourselves with the types of people who can increase our odds of success. Founders: Zendesk wants to give your startup 6 Months of Support Tools for Free Zendesk’s service-first CRM makes it possible to create, handle, and track customer service tickets across phone, chat, email, social media, and any other channel you can imagine — and all from one place. Because it’s built to scale, it’s the perfect fit for startups and enterprises alike. [Right now, Zendesk is offering]( Startups.com users 6 months for free. Zendesk’s support, sales, and customer engagement software are quick to implement and easily scales to meet changing needs. With Zendesk, it takes hours—not weeks—to get up and running. Through Startups.com, Zendesk is offering the following to qualified startups: - Six months of access to Zendesk Support Suite, Explore, & Sunshine products at no cost* - Online office hours with Zendesk’s Startups customer success team - Access to Zendesk’s Startups Community including events, content, & resources What makes Zendesk so great (besides, ya know, [the free 6 months]( - More than just a help desk, Zendesk crosses over to CRM - Easy to set up and service your organizational needs - Turn your support data into a treasure trove of leads, opportunities and market insights Check out their offering to see if your startup [qualifies for this special deal](. There’s no reason not to — unless you really love unhappy customers… in which case, you’ve got bigger problems on your hands. [6 Months for Free→]( In Case You Missed It [How Do I Get People to Take me Seriously? (podcast).]( Join Wil and Ryan as they take a deep dive into why it takes so much work to be taken seriously as a new Founder and what we can do to thumb the scales in our favor. [How to Manage Expectations with a Growing Team.]( As our Startup accelerates toward our desired destination, we must let go of the management reins by building specially-designed teams with smaller-than-normal numbers. The result yields less frazzled managers and staff members who are focused on carrying out the tasks at hand. [The Benefits of Emotional Intelligence.]( Performance is about more than technical expertise — it relies on our ability to relate to people. Leaders who can recognize their own emotions in relation to how they affect their behavior are better able to control their own impulses and handle change. Love this topic? Hate it? Let's chat on social media! Wil Schroter Founder & CEO @ Startups.com [Share]( [Share]( [Tweet]( [Tweet]( [Forward]( [Forward]( Copyright © 2020 Startups.com, All rights reserved. You are receiving this email because you joined Startups.com. Our mailing address is: Startups.com 1322 Manning PkwyPowell, OH 43065-1100 [Add us to your address book]( Want to change how you receive these emails? You can [update your preferences]( or [unsubscribe from this list](.