[jackv00]

Seeking advice from Atlanta’s seasoned entrepreneurs: What are some key strategies or resources you recommend for securing funding for a startup in our city? Any local investors or funding programs you’ve found particularly supportive?

[captreeger]

Thanks, Jackvoo!

Your focus on Atlanta makes it easy for me to be specific, and I will. But I would like to start with a bit of generic/general advice for all readers, regardless of location, as well.

To begin with, it may depend on how much you’re raising, what you’re raising it for (angel, survival, growth, private equity, etc), how you want to set it up (debt, equity, convertible debt, etc). I hope it’s okay to make a few assumptions, that your startup is looking for relatively small (often less than $1million total) in angel investments, perhaps in the form of equity or debt, that might make it relevant for most of our audience. If not, please let me know and I can weigh in more on bigger and more institutional investors.

At any rate, as you may know, raising funding for a technology company or technology-enabled solution provider may be different than for traditional “bricks and mortar” businesses. Of course, there are different options, ranging from friends and family, to angel investors (that might do loans or equity in various forms), to bank loans, to grant programs. And there seem to be more institutional investors and funds that are willing to write early stage checks, in the form of equity, convertible debt (that might become equity on your next financing round), or otherwise.

Whatever the type of business, many people start with a “friends and family” round, of people you know well that are willing to bet (and take significant risk) on you and your concept. I highlight that in order to caution that you may only want accept money from people that can afford the risk and know what they’re getting into. Every early stage company carries a good deal of risk.

And I want to make one more point before I answer your question more directly: be certain to do your own diligence and consideration of your prospective investors before taking money from them. They will want to learn about you before investing. But you should also do your own research on them. Make sure they fit your vision and values and needs. Speak with others you know in companies they’ve invested in. If you owe them money for debt or if they’re equity owners/partners in your business, you want to assure, as much as possible, that they will serve the needs of your business. Not all money is equal. The right investors help you in many ways and the wrong ones can make your life miserable!

Back to your specific question: If you’re a technology company in Atlanta, there are several networks. The oldest and perhaps most active may be the Atlanta Technology Angels (www.angelatlanta.com). I also know most (and think well of) the other investors in this list: https://medium.com/pro-business-plans/top-angel-investors-in-atlanta-ga-fb65ae6844fb .

From my experience, Invest Atlanta is a good resource. And there are plenty of others that I might add later.

Whether you are in Atlanta or not, check out David Cummings’ blog at https://davidcummings.org/ . And I may come back to add more later.

I look forward to your success as you find the way!

[captreeger]

Also, Jackvoo, you asked about strategies.

I think having a clearly articulated vision and expectations can be very helpful. As you do a pitch deck or business plan, be sure to provide clarity for what the investor may want to know: for examples, who you are (the business, your management team) and where you’re going, including what your business will do, what it will use the funding for, why you will succeed and be able to pay back your investor.

For one matter, if you don’t have a clear articulation on these items, the investor may wonder how well you will execute the business. But if you do a good job of making your case, they may also have another reason to expect you to execute well.

Some investors, including some in my prior post like the Atlanta Technology Angels, will actually help you with your presentation and articulation for their groups. And they can help you think through many relevant matters such as your strategy and how much funding you may need.

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