THE question that just about every entrepreneur who needs to raise some money asks himself...
You have put your product on the market and the market seems to like it. You start testing multiple sales channels. You hire. In short, your company is growing, which is great! And when you say development, you generally need financing to accelerate... And there are two solutions: either your company is very profitable and/or has a lot of equity and you can raise bank debt, or it is not the case and you can't! But if you can't raise debt, you may be able to raise capital... And there again 2 options :
- either you make more than 1m€ of annual turnover, preferably recurring and you have the ambition to build a company that will make several hundred million euros of turnover in a few years. In this case, you can go to VCs (venture capital funds);
- or you have less than €1m in annual sales but you are growing fast. You aim to sell your company within a few years, at a price around 10 to 30 million euros. In this case, you can go to BAs (Business Angels or Angel Investors);
And if you are in the second case, you need to find these Business Angels. And you need to find many of them! Because to have 10 of them investing 20 to 50k€ each, you need to contact several hundreds or even several thousands... So either you know "the whole world" and your address book contains a large number of wealthy people or in connection with wealthy people, or it is not the case and the galley begins. You have to scour Linkedin 10 hours a day for months, get email addresses, meet charlatans who will charge you retainers to cover who knows what costs, go pitch at parties full of people asking useless questions to invest 5k€, exchange for months with retired volunteers of Business Angels associations more or less qualitative... It's long and tedious.
And if not, at Super Capital, we can work in full variable if your deck and BP are ok. We send your file to our community of investors: 1,000+ Business Angels and/or 20+ small VCs and you have a series of meetings... Before that, we prepare you to pitch and we discuss with you what to say and how to say it. Obviously, we are very selective and timing plays an important role!
Corentin Orsini - founder of Super Capital and Angel investor
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