How To Approach The Investment Process | Alex Solo

Alex Solo

Apr 07,2020

Alex Solo
#Business #Finances #Leadership #Money

Raising capital is a difficult thing for businesses, especially new startups. How can you get that initial investment so that you can grow your company? 

When trying to get funding for their businesses, many entrepreneurs approach investors and pitch their idea at the time that they need money. The problem with this is that why would someone give you a large amount of cash when they don’t know anything about you?

So what things should you consider when approaching the investment stage?

  • You need to have a long lead-up period

Think about approaching and pitching your idea to investors a long time before the time that you actually need the cash. This gives investors time to actually get to know you and your idea.

  • Meet anyone and everybody

Whether they want to invest themselves, might know someone who is looking to invest, you need to start building your investing network.

So what is the first step I should take?

Build a network early on

The earlier you can start, the better. This includes meeting people without any agenda. Get to know their business, and let them get to know yours. By building that informal relationship first, sending a pitch deck to them later on will feel much less strange.

Even if you have this relationship, an investor will still ask you some questions:

  1. What are you using my money for?
  2. Why do you need it?
  3. What’s your spending plan?

If you can’t answer these questions, you will have a hard time trying to convince any investor to give you their money.

About the Creator

Alex Solo is the co-founder of Sprintlaw, a law/tech firm that's transforming the way legal services are delivered to businesses. Founded in 2017, they've provided legal assistance to 10,000+ Australian startups and small businesses with their team of expert lawyers supported by their custom-built technology. Sprintlaw is one of Australia’s fastest growing firms and has won numerous awards including the Innovator of the Year at the Australian Law Awards (2019) and the LexisNexis Legal Innovation Index Award (2018). As a lawyer, He specializes in the technology space and was named by Lawyer’s Weekly as the top under 30 lawyer for Technology, Media and Telco in Australia for 2019. He previously worked as a technology lawyer at Clayton Utz, an Australian top-tier law firm, acting for blue-chip clients on a broad range of tech, media and other commercial deals. Alex also launched Clayton Utz's startup practice, advising startups and disruptive online businesses across all growth phases from capital raising to exit. Prior to His legal career, Alex was the Founder and MD of Spidr, an online digital agency which he sold in 2015. He also worked for 6 years as a project manager and team leader at Hotfrog.com, a multi-national online business directory.