It’s no secret that a tech start-up’s journey can be challenging and uncertain. As an investor in Welsh businesses, we’ve seen some tech start-ups manage to secure funding and achieve incredible success, while others have struggled to even get off the ground. So, what sets successful start-ups apart from the rest? How can you ensure that your pre-seed round is a success?
In this article, we’ll share some tips and insights for tech start-ups looking to secure pre-seed funding.
1. Build a solid team
A successful tech start-up requires a team of passionate, committed, and talented individuals. When looking to invest in a start-up, we assess the quality of the team to ensure that they have the skills and experience needed to execute their business plan. So, make sure you have the right people on board from the outset.
2. Create a clear business plan
A clear and comprehensive business plan is a must-have for any tech start-up seeking pre-seed funding. Your plan should outline your vision, target market, growth strategy, and revenue streams. Be prepared to answer questions about your business model and financial projections. Investors want to know that you have a viable plan in place for achieving profitability.
3. Develop a minimum viable product (MVP)
Investors want to see tangible progress before they commit to funding a start-up. This is where a minimum viable product (MVP) comes in. An MVP is a working prototype of your product or service that demonstrates its core functionality. This not only shows that you have a viable product, but it also demonstrates your ability to execute on your plan.
4. Solve a real problem for people
It's essential to demonstrate that your product or service solves a real problem for people. Investors want to see that there is a clear market need for your offering and that you have a deep understanding of your target audience. By solving a real problem for people, you can show investors that there is a viable market for your offering and set yourself up for long-term success.
5. Identify your target market
Understanding your target market is critical for the success of your tech start-up. You need to know who your customers are, what they want, and how to reach them. A detailed market analysis will help you identify your target audience and develop a marketing strategy that resonates with them.
6. Network, network, network
Networking is key to success in the tech industry. Attend events, connect with industry leaders, and build relationships with potential investors. A strong network can provide valuable advice and support, as well as potential funding opportunities.
7. Be adaptable
The tech industry moves quickly, and start-ups need to be adaptable to succeed. Be prepared to pivot your business model if necessary and embrace new technologies and trends. Investors want to see that you have the flexibility and resilience to navigate the challenges of the tech industry.
8. Have a clear ask
When pitching to investors, be clear about what you’re asking for. Specify the amount of funding you need, what you plan to use it for, and how it will help you achieve your business goals. Be prepared to negotiate and consider alternative funding options.
In conclusion, securing pre-seed funding for your tech start-up requires careful planning, a solid team, and a clear business plan. By following these tips, you can increase your chances of success and set your start-up on the path to long-term growth and profitability.
We’re always on the lookout for innovative and ambitious tech start-ups to invest in. If you believe your start-up has what it takes to succeed, we’d love to hear from you.