Track Interest, Committed, and Invested

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

In raising a round of funding, most founders focus on the invested funds so far.

When asked about the progress, the founder quotes the invested amount and the amount left in the raise.

This undersells the traction the founder has.

In addition to the invested, also track the interest and committed funds.

For each investor who has some interest, ask for their level of interest.

Add up all the interested investor amounts.

For those who are committed but not yet invested, add up those funds as well.

In discussing with prospective investors, quote the interest, commitment, and investment.

This shows additional interest from investors in the round.

A typical update would be, in our $1M raise, we have $600K invested, $250K committed, and interest at $800K.

It's often the case that the interest and committed funds are greater than the remaining amount in the raise.

This creates scarcity and generates FOMO with the investors who now see that there's not enough room to cover all potential investors.

Use this to help close the fundraising round.

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.

_________________________________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org

Check out our other podcasts here: https://investorconnect.org/
For Investors check out: https://tencapital.group/investor-landing/
For Startups check out: https://tencapital.group/company-landing/
For eGuides check out: https://tencapital.group/education/
For upcoming Events, check out https://tencapital.group/events/

For Feedback please contact info@tencapital.group

Please follow, share, and leave a review.

Music courtesy of Bensound.