Have you ever considered a startup funding consultant?

Probably not! Most founders are bootstrapped and learning everything as they go along, which is ok if you are making the right choices and winning the key battles more often than not. However…

It’s worth investing some of your startup capital to ensure you have the correct financial foundations put in place from day 1.

Starting a firm is hard, no two-ways to say it – everything takes longer than expected, costs more than you had planned for, and there are always extra expenses that were not considered in the first place – it’s therefore crucial to look after your 2 most precious resources in the early days – time and money!

It’s all too common to have a persistent sense of being stuck in a never-ending loop of startup challenges. It’s an endless loop that can have negative impacts on your mental, physical, and emotional health. You invest your time, energy, and everything you have into your business, and for many founders, even with a solid product market fit, you are still spending time searching for the right investors to fund that runway. 

This is where a startup funding consultants comes in. A professional who can lead you towards the shining light at the end of the tunnel.

Let’s know more about them.

Startup Funding Consultants: Get Familiar with Them

It is common for a lot of people to have a misunderstanding between startup funding consultants and business consultants. However, the job descriptions defining those two professions are greatly different. Here’s an example of this for you:

Suppose that you are climbing Mount Everest. Surely, you can never get by without a sherpa? Well, startup funding consultants are like those Sherpas for your business. They are professionals who have mastered the art of sourcing funds for start-ups. They can assist in explaining various funding methods, haggling on deals, and even introducing you to potential funding partners. In essence, they serve as your financial guide when it comes to the contentious world of startup funding. 

On the other hand, business consultants work together with the top management of a formal business organisation. They deal with the development of strategies at the corporate level, for example, on branding, marketing and logistics.

Hiring a Startup Funding Consultant: Top Benefits

After getting familiar with startup funding consultants, it’s time to know what the top benefits are that they can offer your business or organisation.

• Specialised Advice and Planning

Understanding Funding Options: Startup funding consultants can help startups make the right decisions on what kind of funding to seek, depending on the nature and stage of the startup that is to be financed.

Due Diligence: They assist in undertaking sound research on the business to ensure that an investment in it is accurate.

Pitch Deck Refinement: With the help of consultants, it is possible to create an appealing pitch deck that will represent your idea and its benefits.

• Investor Network and Introductions

Access to Investors: Having prepared business plans themselves, consultants know many investors better, starting with venture capitalists and ending with angel investors and private equity firms. 

Warm Introductions: They can also connect you to potential investors, and success in this matters a lot when it comes to business funding. 

Investor Relations: It also involves working with consultants to effectively control investor relations and develop good communication among investors. 

• Negotiation Expertise
  

Optimal Terms: Advisors can act as your advocates when choosing the terms of your funding rounds, keeping your enterprise’s equity intact and prospects secure. 

Legal and Financial Expertise: They can make provisions to ensure that the investment agreement is mutually beneficial or safeguard your interests as indicated. 

Avoiding Pitfalls: Consultants are familiar with issues that may tend to go wrong during the negotiation process, like over-dilution or adverse covenants.

• Financial Calculation and Modelling

Precise Projections: To portray your idea as a successful start-up venture, advisors can assist you in creating a financial model or forecast. 

Valuation Assessment: They may help determine the appropriate price for the company’s worth and ensure that the value of your equity is appropriately allocated. 

Financial Strategy: Consultants can also offer firms advice on how to effectively manage their cash flows, budgets, and finances. 

• Time and Resource Efficiency
  

Focused Efforts: By assigning fundraising duties to a consultant, you may focus on business advancement while sparing time and energy.

Access to Expertise:  Since some specialists practice in specific areas, you do not have to do the essential studies and learn everything on your own.

Reduced Stress: Organising fundraisers may be quite time-consuming and challenging. Much of this burden can be eased by the intervention of a consultant. 

These are the top benefits of startup funding consultants if you choose them for your business.

The Bottom Line

Seeking out an experienced startup funding consultant is not only about getting funds but also about creating a proper base for future development. Their counsel and assistance will enable you to approach the challenging process of fundraising confidently and come out better prepared. 

If you are in a dilemma about your business’s future or are facing issues securing funds, then get in contact with the team here at Pegasus, we’ve been solving these problems for over a decade and have supported starts-up and growth firms through their journeys.