A big question on the minds of many startup and expansion stage companies is when is the best time to raise capital?
That may in fact be the wrong question to ask, argues Wil Schroter, founder and CEO of Virtucon Ventures in this video for DocStock. “Just because you need capital doesn’t mean it will be there,” Schroter says. Instead, the question founders should be asking themselves is what can they do to make receiving capital achievable? In other words, what will they need to do to make investors think of them as an investable asset?
The most important thing startups can do to attract investor interest is generate revenue. It doesn’t have to be huge, Schroter says, they just need to show that they can bring customers in the door and that they can monetize their products. Another thing they need to demonstrate is growth — not necessarily through revenue, but some quantifiable indication that there is growing demand for a product.
The best time to raise funding isn’t necessarily when you need capital, Schroter advises, it’s when the capital needs you.
Watch the full video for more tips on making your startup or expansion company a more attractive candidate for investment.