RSS
Email
SMS
At TIE-ISB Connect - ‘Reverse the Fund Raising Process’ - DD Ganguly - Founder Dimdim.com
(4 votes, average: 3.25 out of 5)
Loading ...Email It!
We are at the TIE-ISB Connect happening at ISB, Hyderabad and yesterday was day 1 of the conference where in workshops were conduction on raising funding and marketing strategy for startups.
One of the sessions was on fund raising by startups and DD ganguly of dimdim.com was the speaker.
DD Ganguly of Dimdim.com on How to raise funding?
DD made the following points..
1)Â Angels should like you - An angel investor will fund you not only because he know’s you will make money but primarily because he likes you. You are more likely to raise money at the angel stage due to the connection or rapport you strike with the investor rather than your huge revenue opportunity.
2) Reverse the fund raising process - We got funded at dimdim.com when we were not actively looking for funding. We by accident went to a seminar and got blogged about and that in turn got investors talking to us. We learnt that reversing the funding process by attracting those people (journalist and bloggers) who can attract the VC to ask you whether you need funding is the right way to raise money. Dont try to get the foot in the VC’s door instead get the VC’s to come to you. Its a VC’s to fund companies so they are also looking out for you. Make them find you you first!
3) Spreadsheets or Spreadshits? - At the angel stage look in the eye of the investor and tell him that you think that financial spreadsheets with 5 year projections are more like spreashits! Incase he still insists on details financials then walk out of the deal. This is because everyone knows that such financials are at based vague projections what the investor needs to be sold on is the large opportunity and you ability to execute and grab that opportunity.
DD also gave some insights on how to choose a brand name for a dot com company giving example on how they chose theirs at Dimdim.com
Choosing a brand name:
- Dot com is available
- Should have repetition as it sticks and people remember by repeating
- Pronounciation and spelling should match as dimdim is pronounced as well as spelt in the same way.
Finally he concluded saying that the end goal of business is making money and an entrepreneur shouldn’t forget that. Fund raising just just a step toward making that money in a big way. His last quote was ‘I love my money & the only thing I love more than my money is other people’s money!’
Loading ...
Quite an eye-opener regarding the fund raising process..have VCs knock your door as they are also looking out for making money!
But this is possible only when you have some true compelling value to offer..So, in turn, concentrate on building compelling values and VCs will certainly find you!
I was at the conference too and the whole jumpstart event was quite a learning experience. I have covered all the sessions briefly on my blog so do come over and read if you want to know about the other sessions.