How do you raise capital during a recession?
How do you raise capital during a recession?
Some of today’s most successful businesses were started during bad economic times.
Certainly, a recession effects the mindset of potential investors, but the one thing to remember is people are ALWAYS looking for a good investment opportunity. A recession could be your best friend IF you play it right.
Check out these companies that started during bad economic times.
Airbnb, Disney, FedEx, General Electric, Groupon, IBM, Microsoft and WhatsAp.
Here’s a short list of things you can do to attract investors today:
- Your Mental Attitude. Damn the economy. Don’t stop gathering names, making calls, and pitching. You only lose when you decide you lose.
- List Investment Dangers. List out all the “dangers” of investing with you. Your pitch can’t be just how great you are, you must be prepared to handle ALL objections beforehand.
- Business Pivot. Consider a pivot. When Mailchimp started they were a paid service only. They pivoted to a limited free introductory service and their subscribers when from about 45 thousand to 450 thousand.
- Cut Costs. Recession equals cut costs where possible. Put every cent and where it’s going under a microscope.
- Focus on Profitability. Investors care most about how profitable you are. Sometimes showing less growth and higher profits is the way to go. Profits. Profits. Profits.
The list could be much longer. But these are the simplest and most key.
While the rest of the business world was reeling from the pandemic some of the guests on my podcast, the Fintech Scaling Show, amassed over 300 million dollars. There’s always a way.
I am the ringleader of a network of fintech investors, founders, and CEO. Let’s chat, perhaps I hook you up or help in some way.