Photo: A.J. Steigman
The sneakerhead streetwear startup Soletron is currently in its seed round and co-founder A.J. Steigman says they’re not “twiddling their thumbs waiting on investors.” We caught up with the former banker who shared with us some tips that he’s using right now for his own round:
1. Make a list of all potential investors.
Steigman says that for your seed round, you should look to friends, family and Angels. For your Series A round, you need to brainstorm any VCs and super Angels.
“First, you need to get on the radar of anyone who’s an Angel investor in your industry.”
And Steigman says you need to “court” them because “very rarely does an Angel or a VC reach out to you.”
It’s up to you to engage their interest immediately, or you’ll lose them.
2. Figure out what investors are going to attack you on.
“Every entity has weaknesses and you have to be able to say ‘Hey, we’re weak in these three areas’ because investors are always looking for a way not to invest.”
“Some companies have a lot of traffic and not a lot of revenue. Some companies have a lot of revenue and not a lot of traffic and you have to be honest with these investors.”
3. It’s all about momentum and snowballing.
“The first dollar is always tougher than the last dollar. It’s important to have a prominent lead because that’ll snowball everything else.”
But Steigman says entrepreneurs need to be apprehensive when raising money, because it may also “take the focus away from your business.”
“You always need to have a bird’s eye view. The more capital you raise, the more diluted your investment becomes. You need to know where the capital’s going.”
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