How to get funded? Here are 7 tips from top startup founders in Thailand

If you’re a startup and not already generating a profit, getting funded is definitely one of the main goals for your business, especially during the early stage. It sounds like a norm that everyone has to do. However, it’s no easy task.

The best guidance comes from those who’ve been there and done that. That’s why I talked to seven stand-out startup founders in Thailand to get seven great tips that younger startups can learn from. You’ll find input from Natsakon ‘Nats’ Kiatsuranon (from ShopSpot), Martin Toft Sørensen (WearYouWant), Natavudh ‘Moo’ Pungcharoenpong (Ookbee), Thanawat ‘Wai’ Malabuppha (Priceza), Kavin ‘Mickey’ Asavanant (Noonswoon), Vachara Aemavat (Computerlogy), and Yod Chinsupakul (Wongnai).

1. Do not talk to only one investor but explore your opportunities

This could be a “duh” tip for some, but many newcomers don’t realize fail to explore their options. All seven entrepreneurs agree you should never put all your eggs in one basket. But that doesn’t mean you should just reach out to about anyone. Priceza founder Wai recommends that startups should search for investors that are interested in the field or industry the startup is in. In addition, reaching out to too many VCs means too many meetings. That can cost startups valuable time that could be spent doing something else.

However, connecting to a lot of people also benefit startups in term of feedback regarding their products. Hearing comments on your product is a good way to learn where to improve.

2. Do your homework

Certainly, venture capitalists do some research about their startups before they meet or invest. The same principle applies the other way around, too. Basically, startups need to know how good the investors are, how many deals the company does per year, and the phase that the venture capital normally invest in. There are other areas too.

VCs are businesses that need to deliver a return at some point too. If a specific VC group is in the harvest time or running out of cash, a startup probably want to steer clear of it. But sometimes, even without money, VCs can help as a strategic partner. So do your homework.

As for the timeline, Nats from ShopSpot explains:

It’s quite common that you will have to meet 20-plus investors for 50-plus meetings before you can pick the top five investors and focus solely on them. Then it would normally take two to three months from the first meeting to get the term sheet, and three to six months from the term sheet to get the deal done.

3. Superstar team, awesome product, and monetization are keys

What investors look for in a startup varies based on the state of the investment. However, all founders agree that the team itself is the core. It’s important that investors and venture capitalists trust that the team can grow the business, specifically the founding team if the deal is at the seed stage. When talking about “the team”, this covers all aspects of the people involved: passion, leadership style, experience, and the culture of that team.

Wai adds:

Besides showing how much it loves the product, the startup must be able to show, with good reasons, why this team is the best to tackle the problem that the company aims to solve. VCs would be asking themselves why this team should be the one to tackle the problem, why not other team or startup? Thus, the startup needs to ask themselves this question also and show your answer to VCs.

4. Only talk to VCs when you’re ready

5. Join an incubator or an accelerator program to learn more

6. Don’t be sloppy

7. It’s okay to fail. Chin up and try again