Fundraising 2.0 – Leveraging Technology to Fill Your Pipeline Efficiently and Inexpensively
Twenty-Five Years ago, single people connected at bars, events and leveraged friends for introductions to other single people.
The dating model worked but the strategy of pitching a date to anyone accessible was also inefficient and emotionally taxing. Reasons for failure were sometimes superficial (example: no attraction) and often deeper (children/no children goals).
The global population had grown for millennia however so why change the dating model if it was not broken?
Enter stage left: online dating services. The premise that “incompatibilities could be identified in advance of people spending time and money courting other people who were not fundamentally a fit” was at first socially unacceptable.
Couples were shy to admit they met online. But more and more couples dated, got married, shared the stories of how they finally met their soul mates, and culturally it became acceptable to admit that a successful relationship could have been started from a technology platform.
The dating scene and the investing/fundraising scene are the same.
Investors and companies connect everywhere. The failure rate of first pitches may even exceed the failure rate of first dates decades ago… but investors generated returns and companies received funding.
So why change something that isn’t broken?
The opportunity for eliminating fundamental gaps between investors and companies is the exact same as the online dating solution. Where singles were no longer going on first dates with incompatible singles, investors now have access to technology platforms that protect their time and resources from being sucked up by companies that do not match their unique investment criteria.
How to choose an investing and fundraising platform? Start with the end in mind.
Investment does not happen without due diligence. Due diligence is typically the final hurdle a company must clear in advance of capital exchanging hands. Unfortunately, due diligence is often where deals collapse because the data uncovered in due diligence can reveal fundamental gaps between the two parties.
A perfect example is where two people date for a year before realizing that one of them hates the idea of marriage and the other dreams of it. Unnecessary pain and suffering for two people whose incompatibility was fundamental. It was a problem easily solved by online dating algorithms.
There is now an investment technology platform that has automated the primary due diligence process for the purpose of connecting like-minded investors and companies seeking capital.
Sploda.com is a global due diligence database of investors and companies seeking capital (equity, debt and sale). Its network includes public and private companies of every stage from every industry and investors of every type (but all must have capital intended for investment).
Brokers use Sploda to identify public company profiles with the criteria they target for investment. Fully automated, Sploda.com sends them due diligence summaries matching their criteria.
Venture Capital firms want their lead flow filtered so that their employees’ time is spent assessing high value companies. Sploda.com is used as a filtering system for every company emailing pitch decks and requesting meetings.
Companies seeking capital complete a single round of diligence for a global network of investors. Instead of having to update diligence rooms for every single investor, there is only one diligence room to update and every matched investor is automatically provided news of their progress.
How does Sploda.com work?
Companies are required to complete an automated round of due diligence in order to join Sploda.com. The online due diligence questionnaire requires approximately 30 minutes for the first round and updates can be completed in seconds.
Investors spend five minutes selecting their target due diligence criteria and are provided due diligence summaries of companies matching their goals.
Investors are matched to companies for free. Companies pay $29.99 USD per month with no other fees.
Investors receive the contact information for each matched company. Companies are notified of investor matches, the type of investor and their general location but do not receive the contact information for the investors. There are benefits to controlling the capital…
Learning from the online dating model.
An investor who targets “pre-revenue companies in the technology industry that are forecasting “X” revenue within 12 months based on a predetermined number of LOI agreements” should be able to receive introductions of companies meeting these criteria.
In this day and age, investors should not be sitting through pitches from companies that don’t meet their due diligence criteria.
And companies should not be wasting their valuable time pitching incompatible investors… “Well that’s an hour we’ll never get back” should be a phrase from the past.
Investing and fundraising is all about lead flow. If each entity fills their schedules with high-value targets, their success rates will rise. Everyone will make more money.
Sploda.com provides efficient and inexpensive lead flow for investors and companies seeking capital.
It’s time for investors and companies to date responsibly.