Tips On Raising Funds

Fundraising is one of the most daunting tasks for an entrepreneur. Every company has to raise capital at different points in time but there could be several dilemmas attached to the question ‘Where do I raise funds from next and how do I do that?’ Shivani Siroya, Founder and CEO, Tala, a California-based fintech company shares five power points to keep in mind while raising funds. Tala recently raised $110 million in Series D round of funding led by RPS Ventures. The fintech start-up has loaned $1 billion to over 4 million customers. Siroya says, “Fundraising takes time and resilience but is well worth the effort to secure partners that support your vision.”

- Bhavya Kaushal

1 KNOW YOUR UNIT ECONOMICS: None of the pitch matters if you don’t know your unit economics like the back of your hand. A helpful question is: Will each dollar you spend on a user generate profit or are you spending more than the user brings in? This helps you understand how each additional user impacts your business, and understand how long it will take for each user to turn a profit, and arms you with data about your company’s health. This will not only reassure investors, but it will also give you confidence to make any conversation a success.