Getting in touch with a professional funding consultant is the best way for startups and scaleups to get the funding they need to grow fast. Whether you are in the pre-seed stage, have a prototype of your product, or you are already present on the market but need additional money to expand, a funding consultant can assist you in multiple ways. From connecting you with angel investors and other entrepreneurs to building a business plan that makes you noticed, there is a lot that can be done with the help of an expert.
But how to make sure the funding consultant you found is really the right choice for your specific business? How to make sure that you are investing in a partnership that will help you build new connections and not burn bridges?
We come with the answers. Below, you’ll find the 10 most important rules and other things to consider when you want to hire a funding consultant. After reading it, you’ll surely end up with a great funding consultant who will help you build your path to success.
1. Prioritize regional experts
Although it might be difficult to find truly local funding consultants (the profession is not yet that popular), some focus on regionality is recommended.
Firstly, consider the continent your company is based on. If it’s North America, you will need someone with previous experience on the market, preferably in your specific state. If it’s Europe, on the other hand, where EU grants for tech companies and startups are a great funding option, you might prefer someone with previous experience in EU grant application writing.
2. Look for industry fit
Funding consultants often focus their work only on specific industries to deliver the best results for their partners. Such focus allows them to build long-lasting relationships with investors, be on top of the most recent trends, and understand the needs of a specific customer group.
You can most easily find funding consultants with expertise in fintech and medtech, but professionals with other specialties are also present on the market.
3. Consider past projects (product fit)
When planning to hire a funding consultant, besides industry fit, you should also consider the product fit. It can be done by looking at the past successful exits your candidate helped in. Do you find similarities between the product you are building and the products of your consultant’s previous partners? Is the target group alike?
Finding a funding consultant with a great product fit means you have an expert on board who knows which investors might be especially interested in your project and how to approach them.
4. Assess past projects involvement
Funding consultants can help with your project on multiple levels — from connecting you with investors and reaching out to accelerators, to writing applications for local grants, designing fundraising campaigns, and even assisting with acquiring not only money but also the right fresh graduates. Depending on their connections and preferences, the list of their specific services will be different. Think of your own requirements and needs as well and choose the funding consultant that meets them the most.
5. Assess where you are with your projects
Do you have your initial business plan ready? Do you already have a team? How far are you in product development?
Asking yourself all these questions is crucial when hiring a funding consultant. These professionals often have preferences in terms of how advanced the company must be in order for them to work with it. While some heavily invest their time even in pre-idea startups, others will rather work with a company that already has a product they can see and play with.
Funding consultants’ previous successful projects also matter — if there are not many pre-seed case studies in their portfolio and you yourself are a pre-seed startup, you might want to look for another funding consultant.
6. Check for LinkedIn connections
LinkedIn can tell you a lot about the people your potential funding consultant knows. Famous investors, entrepreneurs, and other people from your industry are a good sign that you are looking at the right person to help you out with funding. Besides assisting you with getting the money you need to fuel up your business, they might also be able to help you with making the needed connections in the industry — this can become a huge advantage in the future.
7. Remember about the educational background
It seems that some people are simply born to become professional funding consultants. Many aim to work in such a role since their school days, deciding to follow their passion by graduating in a specific major at the university.
Some of the most common and useful majors for funding consultants are finance, marketing, public relations, business administration, economics. As the need for great fundraisers grows, universities offer more and more courses specifically on funding and fundraising.
8. Certifications are always welcome
As with all the other professionals, the world of funding consultants also has a number of certificates available for those who want to prove their value and educate themselves more.
What specific certificates you should be looking for? In North America, the major one is CFRE, or Certified Fund Raiser Executive. Another one is Advanced Certified Fundraising Executive (ACFRE). Europeans, on the other hand, prefer the certification awarded by European Fundraising Association (EFA).
9. Check previous work experience
The work experience prior to becoming a funding consultant can tell you a lot about your candidate. It highlights the industry they have the most experience with, the region they are coming from, as well as whether they are more focused on the for-profit or non-profit organizations.
Many funding consultants come from the banking industry which gives the advantage of being able to work miracles with fintechs. However, you can also find experts who previously experienced working in-house with big tech corporations from various industries, e.g. in business development. These professionals might have a better understanding of a digital product, the development process, and the needs of a company behind it.
10. Review the case studies and portfolio
Funding consultants often present to their potential partners a set of case studies or a portfolio covering the most successful exits in their careers. Look closely at both the content of these documents as well as the way the content is presented. Does all the data presented there seem clear or do you feel information noise? Does the document seem well-built, possibly be a designer, or is it just a set of charts on PowerPoint slides? Do you get a clear idea of how the funding consultant helped this specific company?
All these things can help you review a funding consultant, their approach to work, and how comfortable they feel in the world of digital. The better your overall experience with their case study files or portfolio is, the more professional and open they will be when helping your business.
How to get connected to the best funding consultants?
Funding consultancy is still a quite rare profession that only in the last few years started getting serious traction. Because of this, finding a professional who not only has the right experience but also fits your business might be difficult.
This is where Ideamotive steps in. We run an industry-leading network of IT professionals available for work. Get in touch with us to get connected with a tailored selection of funding consultants based on your company profile, product specification, and other requirements you might have. We can also get you in touch with other top IT talents, including expert developers, designers, project managers, and more.
Get in touch with us today to get your business funded and filled with great people.
