Raising Funding in a Down Market

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

The best time to start a new business is during a down market.

Labor is plentiful.

The competition is on their heels.

Yet, customers are still looking for a solution to their problem.

In a down market, it can be even more difficult to raise funding than in an up market.

The outlook is gloomy, and uncertainty about the future hangs in the air.

Here are the key steps to raise funding in a down market:

Bring your A-game to the table.

Show all the values in the business, including a strong team and a large target market.

Also, show your key insights into the customer problem and your unique solution.

Show initial interest and traction with customers.

Highlight the robust margins in the business.

Talk about the short timeline to break even.

If your business requires a long timeline and has thin margins, rethink your business model.

Investors look for robust margins and short runways to profitability.

Show how the business is up and running and stable, and can weather uncertain economic conditions.

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.

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