Build your projections from the ground up, based on customer segment data, spending habits, and the success of other fast-growth businesses with similar models. Demonstrate multiple revenue streams Be sure your business plan shows a number of ways your company will seek revenue. Many fast-growth startups make the mistake of basing financial projections on a single revenue source, yet investors often want to see multiple revenue streams. This is because having more than one revenue source will provide a fallback position should your initial revenue stream not develop as planned, which is a distinct possibility for an unproven business model. Strategic alliances that improve your talent pool, provide channels of distribution, or increase your visibility will demonstrate that respected companies are willing to work with you, reducing the amount of due diligence a VC has to undertake.
Nothing impresses funders as much as signed contracts.
These demonstrate to investors that clients support your product and company. Have a list of these references available for potential investors to contact. Snowball your funding opportunities The hottest VC deals are often those that appear to be the most urgent. Few things appear more urgent to VCs than funding offers that are on their way from other investors. The momentum these opportunities present can help you sway fence-sitters and give you greater leverage to get the best deal possible.