Knowing how to raise capital efficiently is a daunting task. Sploda is here to help!
Here are a few tips on getting the most out of Sploda. Sploda is a platform that matches companies seeking capital to verified investors. Sploda doesn’t control how attractive your company is to an investor – or how interested an investor might be in your company. Sploda matches companies to investors based on each investor’s target criteria. Sploda cannot guarantee investors will contact your company. In fact, because Sploda is not an Exempt Market Dealer, Sploda cannot track the number of transactions that result from a Sploda introduction. Sploda only controls the matching process and the introductions; and we do it more efficiently and inexpensively than any other service on earth.
If you are not familiar with the different types of funding you can seek, here is a primer.
An Overview of How Sploda Works:
Completing Your First Company Survey:
The information you enter into the survey will be stored as you type it, you don’t have to worry about losing it or retyping anything for future updates – BUT always remember to click the submit button at the end of the survey – this triggers the software to analyze your data and send you your Sploda report.
Note: On your first submission, we strongly suggest that you select “No” (the default) to the question “I would like my Sploda Diligence Summary to be matched with potential investors in the SPLODA database*“.
This way, you can review the actual report that investors will receive and make any adjustments to your survey data. Once you are comfortable with your report – set the match question to “Yes” and click the submit button again to begin the matching process.
Once you have submitted your survey and you have been matched with potential investors, we encourage you to update your survey when changes occur in your business. This will create a pattern of progress in your Sploda report that will attract investors. But note! A new round of matches will only occur if:
- Your Sploda Score improves, OR
- You have changed your elevator pitch, OR
- You have changed your Industry category, OR
- You have upgraded your Sploda account, OR
- You have changed from “Don’t match with investors” to “Yes match with Investors”
This is important… If you choose to match with investors on your first submission, your report will be sent to matched investors immediately (POSSIBLY BEFORE YOU HAVE SEEN IT!). If you notice an error in your report and update it, those same investors will get a second report from you. This may reflect poorly on your ability to garner confidence in your investor base. Therefore we STRONGLY suggest that you do NOT choose to match with investors until you have reviewed your report carefully.
After Submitting Your Survey
After you have completed your survey, Sploda will send you an email including your Sploda Report. If you have asked Sploda to match you to our investor database the matching process will begin immediately. If you have a Basic account, you are restricted to 5 investor matches every 30 days. Once you have reached that maximum, the matching process will stop until 30 days have elapsed. If you haven’t received 5 matches, Sploda will attempt to match your company with every new investor who is accepted into our network. Sploda will also initiate a new matching round each time you update your survey with new information. Please note: An investor will not get referred to the an identical Sploda report more than once.
If you would like unlimited investor matches you can upgrade your subscription here
When you are matched with investors you will receive an email indicating the number of investors that have received your report, when they were sent your information and where the investor is geographically located. We keep investor information private to prevent them from being inundated by contact requests (that’s why they use Sploda). Note: Each investor you match with receives the contact email address you entered in your survey – if they like what they see they will contact you directly. Make sure you have a valid email address in your survey that you check regularly.
Not getting enough matches?
- If you have a Basic account, you are restricted to 5 matches every 30 days. Once you receive your fifth match you will get an email notifying you that you have reached your referral maximum for the 30 days. Your referral count will be reset to zero after 30 days and a new scan of the investor database will be performed to see if there are more matches for you. If you have a Gold or Platinum subscription, your matches will always be completed immediately. If you choose a Platinum subscription, your report will generate high priority notifications for investors. That means if an investor has chosen a free subscription and receives only 5 matches per month, it’s likely that they will see only those companies that have subscribed to the Platinum service. You can upgrade your subscription here
- A new round of investor matching occurs automatically each time you update your survey data. In order for a matching search to be initiated with the investor network, your Sploda Score must improve by 3%, OR you must update your pitch deck, OR you must update your elevator pitch, OR have upgraded your Sploda subscription. This prevents investors from receiving identical reports and losing interest in reviewing Sploda’s matches.
Not getting responses from investors?
If you have been matched to investors but they haven’t contacted you directly to learn more, common reasons for investors bypassing your pitch include:
- You have not included a pitch deck. You should! Here is a free template
- You have not created a sense of urgency for the investor. Ensure you communicate why the investor needs to invest NOW.
- You’ve priced your company too high (assuming you are selling your business or offering equity in return for a price).
- The investor doesn’t think you are ready yet.
- Your business might be good, but your pitch isn’t compelling enough.
- The investor deems the risk of investing is too high considering the potential return on that investment.
If you are not getting responses from investors, ensure that you:
- Include a Pitch Deck. Again, here is a free template
- Have a reasonable valuation – (get advice if unsure).
- Review your report carefully – don’t rush it. Is it accurate? Is your valuation appropriate? Is your pitch compelling? Is the investor risk too high?
Your “Elevator” Pitch
Remember investors are typically not philanthropists, they want to make money and the faster the better. Full-time investors receive multiple pitches from companies every day. If you want to raise capital, you must stand out and you only have a few moments to set your hook. You must have something that will make them want to learn more. This is where your elevator pitch comes in. We’ve designed the elevator pitch to be less than 1001 characters in length. This gives you the chance to sell your investment opportunity to a prospective investor quickly (that’s why it’s called an elevator pitch). We embed your elevator pitch into the summary report we send investors (with your pitch deck if available). If they are not impressed by it, they will likely move to the next opportunity.
Your “Pitch Deck”
A pitch deck is a brief presentation, often created using PowerPoint, Keynote or Prezi, used to provide your audience with a quick overview of your business plan and encourage investors to “buy in”. Once you have created your slides, you should save them in PDF format, then upload them to your Sploda profile. You can do this in your company survey – accessing it via the Sploda Dashboard. If you have not created a Pitch Deck, here is how to do it and here is a free PowerPoint template. Sploda STRONGLY encourages you to create a pitch deck and upload it when completing your survey. You can do this toward the end of the survey.
This is perhaps the biggest single turn-off for investors. Get your valuation wrong and investors will not only dismiss you immediately, they likely won’t be interested if you change it later. Many things can affect valuation, not the least of which is the experience of the founder(s) or leadership team. If you have a track record of building successful companies, you are more likely to attract investors at a higher valuation than leaders without a track record. Don’t be greedy. Don’t think “I’ll set it high so they can negotiate it down”. It’s like selling your car – if you set a price that is way over market, no one is going to call you, no matter how many bells and whistles it has. If you are looking at raising capital based on equity, Sploda will do a simple calculation based on your capital “ask” and the percentage of the company you are offering – that valuation goes on the report that investors receive. If you don’t know how to value your company, seek help before you try to raise capital.