Startup Funding Espresso – Fundraise Closing Rate

Fundraise Closing Rate

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

In sales, the average close rate of prospects is 5% to 10%.

This often seems low to first-time salespeople who view their product as superior to the competition.

There are many reasons why customers don’t buy the product.

These include the lack of budget, inability to make a decision, and other priorities taking precedence.

In fundraising, the close rate with investors is similar at 5% to 10%.

The startup founder must talk to a hundred investors to close investments from 5% to 10% of them.

The founder sees the potential of the startup and the opportunity it has.

But only a minority of investors pitched will ultimately come in.

Reasons include lack of funds available to invest, inability to make a decision to go forward, and other startups such as portfolio companies that take priority.

Founders should factor this into their fundraising strategy.

Set a goal to meet enough investors to hit the fundraising target.

There’s a saying in the finance world.  

You have to kiss a lot of frogs.

The startup space is no different.

 

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.

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