Momentum is critical to securing startup funding

Momentum is critical to success in securing investment. You need investors to be red hot excited about you – and if we get too much time off we cool off, and blame it on you. Investors are experts at killing momentum. We don’t mean to – but we’re accidentally brilliant at it :(.

Some simple things you can do to keep momentum going:

  • Communicate momentum from the firm moments you speak to us. Here is a great Quara Answer with tips on how to do this.
  • If we agree to go to due diligence, MAKE SURE WE ASSIGN A LEAD INVESTOR. Get contact info of ALL interested investors.
  • Center your attention on the lead investor. Do everything you can to make their life easier. Help schedule meetings with the other investors. Ensure all relevant docs are uploaded into AngelSoft / their deal tracking system. Prioritize replying quickly.
  • ACCEPT that you cannot get everyone on board for each meeting. If you try to get everyone, you have to space meetings out too far and you lose momentum. In fact, just focus on having one set of regular meetings with the deal lead and then INVITE ALL OTHER INTERESTED people to attend THOSE meetings. That way you have one person’s schedule to mostly wrestle with.
  • If the deal lead doesn’t have the expertise and credentials in the angel group to champion you/get others to write a check – then it is probably a waste of your time.

3 thoughts on “Momentum is critical to securing startup funding

  1. As usual, Paul, you nailed it. The biggest mistake people pitching make is not getting that champion/lead investor in the group, and generally in advance.

    We angels are like lemmings, and if the lead isn’t excited about it, we’re unlikely to play. Many angel groups list their members and list previous investments. The companies that can use that information to gain a toehold before they even get their talk are the same guys who know how to make sales and convey momentum, and are the kind of founders you want to back.

  2. Thanks for your view on momentum, that’s very interesting. I’m CEO of a German cleantech startup developing the first small wind turbines for low wind speeds. During our last fundraising we particullarily found out how important momentum is in fundraising. I think it is very important to some how create some kind of up swing to attract investors, but also to push the business rapidly forward in these times. Best regards, Martin

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