I’ve been reading a bunch of interesting articles on how investment dollars are flowing back to startups and on how to raise money. It got me thinking. I can remember when I was running my second startup, called CMI, which was a digital publishing company when digital meant floppy discs. We needed to raise money in 1991 to get it off the ground and the only way to do it then was a bank loan – with loads of strings attached. We were lucky and managed to hock £23,000 from a bank in London. It got us going.

We developed that business through angel money and good old fashioned cash flow. Mainly because I didn’t really understand HOW to raise money. 18 years later I’ve raised over $125 Million for ventures I’ve run in both Europe and the US and I have finally learnt the HOW. Endless bankers, VC’s and advisors each preaching their personal secrets and methods for fund raising have taught me that there is a standard method at the core.

The fundraising process is like an extended sales process. Little more, little less. And the experts focus on the process of raising money. The how, when, what and who of fund raising. Between them all they have taught me the following vital capital raising tips. The kind of tips that should you deviate from you do so at your dumb ass peril:

1. Bootstrap the business until you have fully defined and delivered your @ha idea. Oh and bootstrap means finance it YOURSELF.

2. Once you have clearly developed your concept and gone live with a beta/prototype you will need a business plan. In that order.

3. Develop a 3 year financial model.

4. From that produce an investor presentation – around 15 slides (not more than 20) explaining the ‘space’ (category) your product or service plans to attack, your unique approach, the problem you are solving for customers or users and the market opportunity your offering unlocks. Then spotlight financial highlights, use of proceeds and reasons why investors should invest.

5. Practice your investor presentation with friends and family (hey, some of them may even invest) and after that rewrite your business plan with the insights and feedback from doing the presentation.

6. Make sure your Website is sophisticated and clear enough for investors ‘cos that’s the first place they’ll go when researching your idea.

7. Make a list of target investors – or people who know potential investors. Target friends and family first – then network to angels. Do not approach VC’s for early rounds – they come later if at all.

8. Pitch like mad and remember that getting investors on board is an education process. So educate them – after you have met with them send them a steady and light flow of well targeted emails reminding them how you’re progressing and educating them further on your market.

9. Don’t forget to get a few investors interested – relying on one is a suicide mission. Always be positive with investors – NEVER look desperate.

10. Ask for the money. At the right point – when you know they want to invest too!

Lastly, join the Fundraising Group at Innovatrs – its free and there are some cool, experienced practitioners there.