In what appears to be an easy and doable task, putting together a couple of slides that reflect your business proposition can turn out to be a complex process. And that catastrophe would eventually make your pitch to seed funding investors fall flat on its face.
Now, imagine all the herculean efforts you maneuver just to get one appointment for your startup business funding and all of that goes in vain due to a very distinguishable gap in knowing the entire investment process happening through a venture capital firm.
African tech startups, who envision making the finest strokes on the canvas of funding pitch, must know the real secret behind the entire drill of an investment process.
The Perils of Unawareness (African tech startups, take notes!)
Have you ever heard about the Dunning-Kruger Effect?
The Dunning-Kruger effect explains when a person has scarce knowledge about a specific subject, he/she would overestimate and brag about having superior understanding. Thus, failing to assess the correct decision.
Wondering how the Dunning-Kruger effect comes into play here in this discourse?
Well, having a Dunning-Kruger effect while seeking startup business funding can be detrimental. And yes, there’s no value for doing a post-mortem after things have gone wrong.
As per studies conducted, more than 200 businesses have failed to raise successful startup business funding. Due to impaired knowledge about the investment process happening via a venture capital firm. The modus operandi of asking seed funding investors does not include only creating a pitch deck, but a lot more beyond that.
The following stream of information would illuminate your knowledge room further. It will empower you to have a strong anchorage in the business investment cycle.
Few Codes that bring Investors Onboard!
For African tech startups, these all-pervasive codes of investment process make your startup business funding ride smooth, even though traversing on rickety journeys as well:
1. The Showstopper Pitch
The first step of the investment process of a venture capital firm happens with a pitch to the seed funding investors. A crucial introduction to one of the firm’s partners will provide you with this opportunity.
2. The Bigger Pitch
In the next step, you would be introduced to either all the partners or the chief partner in the concern.
3. The Committee
The next stage would be meeting with the investment committee. Before sanctioning startup business funding, seed funding investors would sit with the larger committee and have consentient agreement on proceeding or rejecting the funding and you would get clarity on the same as well.
4. The Terms
Before the final contractual papers for your startup funding are prepared, the term sheet is formulated that would summarize the terms which would rest in the final contract.
5. The Contract
Once the term sheet has been signed off, detailed legal papers entitled to be the final contract are processed and sent.
6. The Final Countdown
When all due diligence has been covered and the contract is signed off by all authorities in concern, the amount agreed as startup business funding is credited to the respective bank account.
Hang on, for the BEST PART…
Dedicated to African tech startups, and renowned as one of the best venture capital firms in Africa, Blaq Ventures can get you your dream startup business funding in no time.
- Easy process
- Expert mentorship
- Strategic Connections…
and more; nothing must stop you now!