With the recent Jobs Act allowing more flexibility for entrepreneurs to raise capital under Regulation, Rule 506 as well as crowdfunding, a lot of entrepreneurs need to leverage the use of social media to gain investor leads.
While a lot options exist online for entrepreneurs to raise money from both angel investors and venture capital, there is still a large funnel that is untapped that can give any startup the edge to attract investors. Especially if they are not located in the hub of Venture Capital like Palo Alto, Silicon Valley, San Francisco, and other hotbeds.
But apart from an idea to generate investor leads from social media marketing, entrepreneurs really need to be prepared when presenting their capital raise goals.
Whether its a sexy crowdfunding video, pitchdeck, pitchbook, business plan, or private placement memorandum, entrepreneurs and start-ups need to realistically budget the costs of have these prepared so they have an upside for success in attracting and closing venture funding or angel investor rounds.
Further, its is much more cost effective for a startup to outsource social media marketing at the onset of a capital raising strategy pre-funding to create a funnel that will attract traction for a startup as well as equity.
Sometimes, entrepreneurs have only one shot at making their best impression to sophisticated angel investors, venture capital, SBA loan, grants, and other funding sources.
So being fully prepared is what separates the companies that do get funded vs. the entrepreneurs who think that being the lone ranger will work.
Having a sold internal management team and an external consulting team that provides expert guidance to get funded is the seed of a much bigger tree that will eventually grow and fuel an entrepreneur’s vision.