To attract the interest of future financiers, it is important to know the company’s growth potential, the capital it will need in the future, the size of the market, as well as real or potential competitors.

The beginnings are the most complicated for any startup, but in reality, the hardest thing is to stay in the market and achieve the growth that is so longed for, and for this, capital is needed that allows them to continue with that objective. The advancement of technology has brought about the creation of various business models linked to the digital world. This is how startups are born, organizations that develop innovative products or services with design and marketing linked to the technology sector.

The recent report presented by the Peruvian Association of Seed and Entrepreneurial Capital (PECAP) highlights that in Peru more than 45 million dollars were invested in 22 startups in the first half of this year. This money was mainly from foreign sources. This is an important amount since it shows that more people are betting on Peruvian companies for the injection of capital.

Taking into account the importance of raising capital today and that this can be an important factor for the success of a venture, Augusto Cáceres, director of the Peru Venture Capital Conference (PVCC), gives us 5 steps to capture the interest of an investor.

1. Meet the potential investor:

There is no worse mistake for entrepreneurs than presenting themselves to their future investors without having previously studied them. To prepare a better speech, we must take into account information such as: Do they know their industry? Have they made any other investments in their industry? Are they novice or experienced investors? Do they belong to a network of business angels or are they investors? independent? Also, in which companies did you start or in which were you before becoming investors? Based on this information, a better exposition can be proposed. Knowing the investor saves time and makes it easier to find connection points.

2. Present figures:

To attract the interest of future financiers, it is important to know the company’s growth potential, the capital it will need in the future, the size of the market, as well as real or potential competitors. If this information is presented in figures, a better result will be obtained. Although it is necessary to be honest and transparent with the metrics, the market that is going to be captured and the projections, it is important to show the potential (grounded) of the business.

3. Craft a clear presentation:

Going straight to the point, telling the problem, the solution, the team and detailing what the money is used for is essential. Making a concise presentation of 5-7 minutes and giving space for comments and discussion will make the presentation more attractive. Another plus that can capture the attention of investors is to make a small demo or brief presentation that shows how the solution works, which will make them better visualize the potential of the solution.

4. Study the different investment modalities:

When entrepreneurs are looking for financing, they must be aware of the modalities and what each of them implies in terms of percentage of shares, participation, and legal mechanisms in the negotiation with the investor. Knowing about the different theses and ways in which angel investors, accelerators, and ‘venture capital’ funds, among others, invest, can be the difference between getting funding for the business or being left out.

5. Keep the startup in the entrepreneurial ecosystem:

The meeting instances for startups are the only places where startup founders can acquire opportunities and experiences to sell their idea. It is worth noting that sending many emails requesting meetings can be detrimental to capturing opportunities. 

For more information contact Latamforce, we are here to help you every step of the way, taking your business to the next level of success.