Elizabeth Galbut, Partner at SoGal Ventures, Offers Advice For Successfully Raising Venture Capital
April 17, 2024
Elizabeth Galbut, partner at SoGal Ventures, offers advice for startups to secure funding, emphasizing the importance of thorough research, networking, and casting a wide net when approaching potential investors.

Elizabeth Galbut is a venture capitalist, designer, professor, and global speaker on healthcare innovation. She is a Co-Founder and Managing Partner of SoGal Ventures which invests in diverse founding teams in the US and Asia.

"Angel investors are another good source of early-stage funding. With their extensive networks and experience, angels can offer valuable advice and connections. Startups should cast a wide net when seeking investors, as securing funding can be a numbers game. Even if one investor says no, there are plenty of others out there who might be interested."

Elizabeth Galbut offers these five guiding principles for raising venture capital.

Be ready to raise capital at the right time.

Before seeking investment, ensure your business has achieved key milestones such as proof of concept, product-market fit, or initial revenue generation. Investors are more likely to be interested in companies that have demonstrated traction and potential for growth. Timing is crucial because seeking funding too early can lead to unnecessary dilution or rejection from investors.

Tell a compelling story and make it cohesive.

Craft a narrative that communicates your business's mission, vision, and value proposition in a compelling way. Investors are not just interested in numbers; they want to understand the story behind the business and what sets it apart from competitors. Ensure consistency in messaging across all communication channels, including pitch decks, presentations, and meetings, to reinforce your brand identity and build trust with investors.

Understand a good match between your business and investors.

Research potential investors to identify those who have a track record of investing in your industry, stage of development, and geographic location. Look for investors who not only provide capital but also bring relevant expertise, networks, and resources to help grow your business. A good match between your business and investors increases the likelihood of securing funding and receiving valuable support beyond financial investment.

Cast a wide net and be persistent.

Don't limit yourself to a small pool of investors; instead, reach out to a diverse range of potential investors, including angel investors, venture capitalists, and strategic partners. Networking events, pitch competitions, and online platforms can help you connect with investors. Be prepared for rejection and maintain persistence throughout the fundraising process. It's common to engage with numerous investors before finding the right fit.

First impressions count.

Pay attention to every aspect of your presentation, from your pitch deck and website to your personal appearance and demeanor. Make sure your materials are well-designed, error-free, and visually appealing. Practice your pitch until it's polished and confident, and be prepared to answer questions effectively. A positive and professional first impression can significantly influence investors' perception of your business and increase your chances of securing funding.

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