In my professional career I have seen multiple instances of startups not being able to raise funds to support their ideas or grow their ventures despite having great technical bandwidth, talent pool and credentials. As shocking as it sounds, that’s actually quite common in the startup arena. And, it’s true till this day. This is mainly because many of the startups fail to embrace the fact that their idea is only worth the value it creates, everything else is just noise. It’s not just about the fine technology or the amazing features anymore. Especially because the World we live in today has undergone massive shift in the form of technology democratization. Hence, the technology monopoly or superiority is fast becoming a thing of the past. You might not be able to hold your position longer just on the basis of technology as it can be easily replicated or recreated by another startup tomorrow. Even the host of awesome features that you have in your product are no good if your customers don’t need them or use them as much as you anticipated they would.

This is mainly because many startups fail to embrace the fact that their idea is only worth the value it creates, everything else is just noise.

Everything that your startup is all about need to point to a commercial equivalent of success. That’s the key. Ultimately a venture needs to make money for the stakeholders and provide value to the customers over the course of the customers’ journey. Several great ideas thus get fizzled out way too early simply because their projected value proposition is not that valuable after all to raise the needed fund for them to grow making them eventually run out of their money. When the runway shrinks, all ideas tend to take a back seat and several of those get shelved even. Because when those startups knock the doors of professional investors they end up facing the proverbial ‘stone wall’ welcoming them. And, the buck just stops there.

Several great ideas thus get fizzled out way too early simply because their projected value proposition is not that valuable after all to raise the needed fund for them to grow making them eventually run out of their money.

I have seen that most of the time the startup’s team lack a strategic and structured approach, prior understanding of fundraising and what really goes into successfully raising funds. Their strategy and approach seem half-baked to say the least resulting in the investor losing confidence in their (startup’s) idea. That’s why, when we get a request from a startup for mentoring and guidance we prefer to start from the point of 0 (zero), from the ground up.

…most of the time the startup's team completely lack a strategic and structured approach, prior understanding of fundraising and what really goes into successfully raising funds.

Helping new founders, entrepreneurs and change makers is at the core of our priority and preference. Over the years, our passion for helping startups have led to the creation of several frameworks and models which proved immensely beneficial in helping such entrepreneurs from the very start of their engagement with us. One such framework is ‘The 7Ps Framework of Fundraising’©.

7Ps Framework of Fundraising©

The 7Ps Framework of Fundraising© involves 7 critical elements of successful fundraising. Each of those elements are independent by identity but interdependent by action and outcome. Although they don’t really occur in a sequential manner but following a coordinated sequence and applying the foundational model of the 7Ps framework could bump up the success potential of your fundraising initiative.

The 7Ps framework of fundraising© involves 7 critical elements of successful fundraising. Each of those elements are independent by identity but interdependent by action and outcome.

Constituents of the 7Ps framework of fundraising©

• 1 – Pragmatic

• 2 – Preparation

• 3 – People

• 4 – Performance

• 5 – Patience

• 6 – Practice

• 7 – Persistence

Let’s take a look at these elements in much more detail below.

1 - Pragmatic: Although this seems like quite an obvious first step but unfortunately most of the time it’s either overdone or overlooked. As a founder you need to be pragmatic every step of the way. The vision might be magnificent but you will always have to create the path to that vision. This will need rational assessment of your own strengths and weaknesses against industry benchmarks and be aware of the market trends, industry information, critical knowledge, and have a good understanding of the WHs in the startup investment arena. Be passionate about your vision but be logical about its impact. You have to show the prospective investor that you have a ‘Thinker’s Team’ behind you and that you are a rational decision maker. This will help set the ball rolling in the right direction.

Be passionate about your vision but be logical about its impact.

2 - Preparation: Someone once said, a good preparation goes a long way. Well, it’s not wrong. When it comes to positioning your startup and pitching in front of seasoned investors your preparation is the only thing that will help you steal the thunder. I always say, give everything you got and prepare as if your life depends on it. Knowing is powerful, but only if ‘your knowing helps your doing’. An investment is a big landmark in your start-up journey. So, give it the respect that it deserves. Prepare early, prepare well. Don’t go half-baked because that’s not just unprofessional but damaging.

An investment is a big landmark in your start-up journey. So, give it the respect that it deserves. Prepare early, prepare well.

3 - People: Investors are human and so are your competitors. Businesses are by humans for humans. At the core of it all are the people involved from both sides, with you on one side vs everyone else on the other. Humans have instincts, humans have cognitive biases. Sometimes that bias works in your favor and sometimes it doesn’t. For example, if there are 200 applications received by the investor and your startup is one of the 20 which have gotten an invitation to pitch your idea, know that you have already created the first impression even before you actually met the investors. That’s the bias, I mentioned earlier, at play here. The biases are nothing but certain pre-established criteria based on which you even received that first call. In a way those biases actually help you by eliminating your competition. There are a number of things that you can do to capitalize on the people element such as having a good team by your side can be a big booster and add to your pitch. Although it doesn’t guarantee success it certainly does provide a glimmer of hope. As a founder focus on onboarding people with the right alignment and attitude. There’s no rule of thumb here. Something that works for the other may not work for you. You have to find your ‘winning combination’. Establish human connect with all the relevant external parties. Like I always tell my clients, “Plan for the People and the rest will fall in place.” The ‘People’ element is an extremely influential factor out of all the 7Ps.

Plan for the People and the rest will fall in place.

4 - Performance: The next element is performance. This element in true sense makes your idea more actionable whether your performance is slotted into the future as a forecast or based on the past data as a proof of confidence. Either way the performance element of this model gives you a good chance to showcase your best. Most often this element can make or break your deal if you don’t handle it carefully. It could also apply to the credentials of the founders themselves. Anything which establishes that you strongly believe in your idea and that you have what it takes to succeed can help with strengthening your positioning. To top it up you can also show any relevant example of you doing it in the past, that could be a huge confidence booster. This can significantly change your dynamics with a prospective investor. A small portion of the performance is also influenced by how well the pitch is made. That includes, the presentation, communication, objection handling and everything that goes with it. However, it’s not just about how your business plan is presented but what is there in the deck that matters the most. A savvy investor will see a 'hollow plan' from a mile away. I have personally engaged with founders who had great communication skills but their plans lacked substance and then have known investors who don’t even bother about the modalities of presentations and series of meetings rather go with the data provided to them and use their 'expert's instinct' i.e., their instinctive gut feeling to make an investment decision. There are plenty of use cases and real stories in the start-up world where many startups raised funds at a time when they had nothing big on paper. However, it's never a bad idea to build your presentation and communication skills as an entrepreneur. Because at some point you will have to represent your brand and they way you represent could have some impact on the decision making process even if not directly on the outcome as such. Thus, even if it’s just mere facts and data, a good positioning can always create a lasting impression. When you are in front of the investor imagine yourself as a performer, the spot light is on you. Always remember, interpersonal relationships and likeability has a lot to do with human decision making. An investor needs to like you first to trust you with his money later. Trust is of paramount importance here. You need to instill that confidence in him. This in a way also establishes that you have what it takes to be the face of the brand when you actually make it big out there.

An investor needs to like you first to trust you with his money later.

5 - Patience: Most of the time I’ve seen founders drop out of the chase simply because they lose patience. Let’s face it, you are asking someone else to believe in your dreams and put their money into supporting it. Fundraising and driving a startup as a whole needs a marathon-ian mindset. You have to push yourself and keep going. It is but a certainty that you will face objections, criticisms why even failure to raise funds at times. Does that mean you should stop trying? Of course not! That only means that you have to work on your plan again. Make it as clear as day and night, black and white. Take your time to do the ground work all over again (Starting from '0' remember?) and gather more data to support your ideas. Investors want entrepreneurs who can be resourceful when there is constant resource constraint. Be nimble, be flexible, be agile, and be responsive. Most importantly be patient.

Fundraising and driving a startup as a whole needs a marathon-ian mindset… Investors want entrepreneurs who can be resourceful when there is constant resource constraint.

6 - Practice: Success in fundraising comes from practice and repetition. We need to understand that every investor has his wish list charted out almost always in advance. Which means he knows where he would like to park his money and for how long. Of course once in a while a disruptor arrives and changes the status-quo but on an ordinary Monday investors are very specific. So, failing with one investor does not mean your idea has no merit, it only means that probably you are knocking the wrong door. Go out there, find the right door, knock, repeat, until a door opens. Observe your pitch closely and analyze the investor feedbacks with utmost sincerity. Make necessary changes and adapt your style. The more you pitch your plan the more feedback you are going to get. Use that to your advantage.

Success in fund-raising comes from practice and repetition…. Go out there, find the right door, knock, repeat, until a door opens.

7 - Persistence: This according to me is one of the most important factors. As an entrepreneur we have to make peace with persistence. I agree, it’s not easy. It never is. But you are a startup Founder you didn’t want it easy, right? Going about doing things despite failures and setbacks is one sure shot sign of ‘hard as steel’ entrepreneurs. Investors do not want founders who would abandon the ship when the going gets tough, rather they would want founders who has the courage to stare right at the face of the storm while trying to maneuver their ships and shipmates to safety. There are hundreds of things that can line up against you. From a new competitor on the block, to new government policies, and from change in customer purchase behavior to what not. Braving such situations and finding your way while adapting and adopting simultaneously is what will keep your ship afloat and differentiate you from your competition. I always like to say to the founders I work with, ‘Flaunt your battle scars with pride’. Be persistent, keep moving forward even if it's against the tides. Because keeping everything else as constant your persistence alone might be able to open doors, unearth hidden opportunities, save the day and probably even seal the deal. Consider this as your mantra, ‘Fall you might but rise you must’! Why? Simple, because you are an entrepreneur; and, now you have a once in a lifetime opportunity to make a real difference. So, while everyone is busy talking, you my friend get busy pursuing your big dreams.

But you are a startup Founder you didn’t want it easy, right?... Flaunt your battle scars with pride… Consider this as your mantra, ‘Fall you might but rise you must’!

So, what’s the takeaway?

The most interesting thing of the '7Ps Framework of Fundraising' is its simplicity. It's almost as if we can't do without it. And that's why it holds such great potential. In simple terms, the takeaway is an underlying fact that fundraising is not an outcome but a process and the 7Ps framework is carefully developed to make that process more effective and purposeful. And, as founders it is but essential that you follow the process with complete earnestness thoughtfully executing every step regardless of what may come your way. The possibility of success could climb a few notches higher with the right strategic approach and through the application of the 7Ps framework of fundraising.

In simple terms, the takeaway is an underlying fact that fundraising is not an outcome but a process and the 7Ps framework is carefully developed to make that process more effective and purposeful.

Because raising fund for your venture can feel like a daunting task, but adopting a pragmatic and rational approach can make it both achievable and rewarding. The key is to blend careful planning with clear communication, ensuring that potential investors understand your vision and trust your capability to execute it. Begin by solidifying your business fundamentals—ensure you have a solid business plan, a clear value proposition, and a well-researched market analysis. Investors need to see that you have a deep understanding of the market, your competitors, and the unique value that your startup brings.

Begin by solidifying your business fundamentals—ensure you have a solid business plan, a clear value proposition, and a well-researched market analysis.

Next, focus on building a working prototype or a Minimum Viable Product (MVP) (if possible) that showcases your concept in action. This prototype or MVP doesn’t have to have everything that you intend to provide to your customers; rather it just needs to demonstrate the potential of your idea in a tangible way. As in most situations in life, 'seeing is believing' applies to this scenario as well. The prototype in a way puts a face to your idea. When investors see a working model, it builds their confidence in your ability to turn ideas into reality. Alongside this, gather and present initial user feedback and any early traction. Numbers speak louder than words—showing that real users find value in your product can significantly boost investor interest.

When investors see a working model, it builds their confidence in your ability to turn ideas into reality.

When it comes to approaching investors, be strategic and sincere. Research and target investors who have a history of investing in your industry or stage of business. Tailor your pitch to align with their interests and past investments. During your pitch, be transparent about your financials, including both your current state and your financial projections. Honesty about where you are now, combined with a realistic growth plan, builds trust.

Honesty about where you are now, combined with a realistic growth plan, builds trust.

Remember to tell your story. Investors are not just investing in a product or idea; they are investing in you and your team. Share your journey, your motivations, and your passion. Highlight your team’s strengths and how their expertise positions your startup for success. A passionate, committed team is often seen as a predictor of a startup’s potential to overcome challenges and achieve milestones.

Remember to tell your story. Investors are not just investing in a product or idea; they are investing in you and your team.

Negotiation is another critical phase where pragmatism is essential. Be clear about what you need in terms of funding and what you are willing to offer in return. Project your vision, understand your startup’s value proposition but be prepared to back it up with data. Flexibility can be your ally—being open to different types of funding structures or terms can sometimes make the difference between securing a deal and walking away empty-handed.

Project your vision, understand your startup’s value proposition but be prepared to back it up with data.

When it comes to raising funding for your startup, leveraging the power of people and showcasing a good performance can make a significant difference. Start by building a strong team including both internal and external stakeholders. Investors invest in people as much as they do in their ideas. Surround yourself with talented, passionate individuals who bring complementary skills to the table. Highlight your team's expertise and track record in your pitch. Show that you have the right people in place to execute your vision. Your team’s credentials and commitment can instill confidence in investors, demonstrating that your startup is in capable hands.

Start by building a strong team including both internal and external stakeholders… Show that you have the right people in place to execute your vision.

Networking is a crucial aspect of leveraging people. Build relationships with mentors, industry experts, and other entrepreneurs. These connections can provide valuable advice, introductions, and credibility. Attend industry events, join startup communities, and actively participate in relevant discussions. Networking not only opens doors to potential investors but also helps you stay informed about industry trends and opportunities. So, work on building a network of strong support system. It will prove to be a blessing in the long run.

Networking not only opens doors to potential investors but also helps you stay informed about industry trends and opportunities.

If your startup has been on the ground for some time and you have some data to show case, then you can very well leverage that to your advantage. Because when it comes to investing there’s no other better proof that your idea is working than your recent performance. Investors want to see evidence of traction and growth. Track your key performance indicators (KPIs) meticulously and present them clearly in your pitch. Highlight milestones achieved, such as user growth, revenue figures, or strategic partnerships. Showing a consistent track record of performance builds trust and demonstrates that your startup is capable of achieving its goals.

Because when it comes to investing there’s no other better proof that your idea is working than your recent performance. Investors want to see evidence of traction and growth.

Use data to tell a compelling story about your startup's vision. You want to change the World? Then talk about it. Prove it with data as best as you can. Be clear, be genuine. Present metrics that showcase your market potential, customer satisfaction, and operational efficiency. Basically anything that lends some credibility to your vision. For instance, if your customer acquisition costs are decreasing while your customer lifetime value is increasing, this is a strong indicator of a sustainable business model. That means there is a high likelihood that your customers are liking your product or solution. One thing though, be it while measuring or when presenting you need to ensure that your performance metrics are accurate and up-to-date, as investors will scrutinize these numbers. And, any mistake can work against your fundraising goals.

You want to change the World? Then talk about it. Prove it with data as best as you can. Be clear, be genuine.

Incorporate testimonials and case studies into your pitch if you have them. That always helps. Positive feedback from customers, partners, or industry experts can validate your startup's value proposition and performance. Real-world success stories make your startup more relatable and credible. Additionally, be transparent about challenges you've faced and how you've overcome them. This honesty shows resilience and problem-solving capabilities, which are highly valued by investors.

Real-world success stories make your startup more relatable and credible. Additionally, be transparent about challenges you've faced and how you've overcome them.

One important thing to be noted is that, there will be situations when you might need to effectively balance your people and your performance. That could be the key. A stellar team with poor performance metrics can be as concerning as impressive metrics with a weak team. Show how your team’s expertise has directly contributed to your startup’s success. For example, if a marketing expert on your team developed a campaign that significantly boosted user acquisition, highlight this achievement. The integration of people and performance creates a cohesive and compelling narrative.

A stellar team with poor performance metrics can be as concerning as impressive metrics with a weak team… The integration of people and performance creates a cohesive and compelling narrative.

Strategically, focus on continuous improvement. Regularly assess and refine your team’s roles and responsibilities to ensure they align with your startup's evolving needs. Similarly, continuously monitor and optimize your performance metrics. This proactive approach demonstrates to investors that you are committed to growth and adaptability.

Strategically, focus on continuous improvement. Regularly assess and refine your team’s roles and responsibilities to ensure they align with your startup's evolving needs.

Building a startup is a journey that requires more than just a brilliant idea—it demands patience, practice, and persistence. And, your patience and persistence will be tested to its ultimate limit especially when you are looking to raise fund for your venture. As mentioned earlier, you should think of it as a marathon, not a sprint. Now, as mundane as it sounds, patience is essential because securing investment often takes longer than anticipated. It's about building relationships and trust over time. Start early by engaging with potential investors well before you need the funds. Attend networking events, participate in industry forums, and connect on platforms like LinkedIn. This way, when the time comes to pitch, you're not a stranger but a familiar and trusted face.

Building a startup is a journey that requires more than just a brilliant idea—it demands patience, practice, and persistence…. It's about building relationships and trust over time. Start early by engaging with potential investors well before you need the funds.

Practice is your best ally in mastering the art of the pitch. Rehearse your presentation repeatedly, refine your story, and be ready to answer tough questions. The more you practice, the more confident and convincing you'll become. Consider seeking feedback from mentors, fellow entrepreneurs, or even potential customers. Their insights can help you fine-tune your pitch and anticipate investor concerns. Remember, a well-practiced pitch isn't just about delivering information—it's about telling a compelling story that resonates with your audience.

Rehearse your presentation repeatedly, refine your story, and be ready to answer tough questions. The more you practice, the more confident and convincing you'll become.

Persistence is the glue that holds everything together. Rejection is a common part of the funding journey, and it can be disheartening. However, each 'no' is an opportunity to learn and improve. Analyze feedback from each pitch, identify areas for improvement, and adjust your approach accordingly. Unlearn, learn, correct, adapt and apply. Stay resilient and keep knocking on doors. Persistence also means that you are pushing boundaries and continuously looking at newer avenues of growth for your business. And, that’s a huge confidence booster for an investor. Show investors that you are committed to growth by hitting milestones, acquiring customers, and refining your product.

Persistence is the glue that holds everything together… Persistence also means that you are pushing boundaries and continuously looking at newer avenues of growth for your business. And, that’s a huge confidence booster for an investor.

Moreover, persistence involves maintaining a positive attitude and a long-term perspective. Celebrate small wins along the way, whether it's securing a meeting with a potential investor, receiving positive feedback on your product, or hitting a key business milestone. These achievements keep you motivated and help you move forward. Additionally, maintaining a positive outlook helps you build better relationships. Investors are more likely to support founders who are optimistic and determined, even in the face of challenges.

Celebrate small wins along the way, whether it's securing a meeting with a potential investor, receiving positive feedback on your product, or hitting a key business milestone.

To strategically apply the 7Ps framework, start by setting realistic timelines for your fundraising efforts. Understand that fundraising as an activity takes time to yield the desired result. Engage with potential investors often and maintain regular communication. Keep them updated on your progress, so they see your commitment and growth over time. Dedicate time to fine-tune your pitch. Use every opportunity, from formal meetings to casual conversations, to refine your message. Gather feedback and continuously improve. If you would like to understand how startup valuation is calculated then I would recommend you reading my other blog on the topic. 

Engage with potential investors often and maintain regular communication. Keep them updated on your progress, so they see your commitment and growth over time.

Finally, embrace failures as a part of your fundraising journey. Be prepared to face setbacks and use them as learning experiences. Stay focused on your goals, keep refining your approach, and don’t give up. Be definitive about your investment ask but be reasonable. I have seen Founders falter the most due to this one simple reason, clarity of the ask. Define and know your lowest acceptable numbers. Otherwise you might end up asking for more than what your current position justifies or accept whatever comes your way out of sheer desperation. Either way, it’s not a win-win proposition. Because remember, each step you take, no matter how small, brings you closer to securing the funding you need. Hence, strategically take a step that takes you towards your goal and not away from it.

Define and know your lowest acceptable numbers. Otherwise you might end up asking for more than what your current position justifies or accept whatever comes your way out of sheer desperation. Either way, it’s not a win-win proposition.

In essence, raising fund is a test of your determination and resilience. By strategically applying ‘The 7Ps framework of fundraising’, you not only increase your chances of success but also demonstrate to investors that you have the tenacity needed to lead a successful startup. This combination of qualities and actions can make all the difference in navigating the challenging but rewarding path to securing investment.

By strategically employing ‘The 7Ps framework of fundraising’, you not only increase your chances of success but also demonstrate to investors that you have the tenacity needed to lead a successful startup.

Happy fundraising!

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Disclaimer: The above article is based on personal understanding and views of the author. The concepts discussed are solely for informational purposes and should not be considered as professional advice or guidance. The author neither guarantees nor promises financial gain of any kind through application of the concepts covered in this article. The author does not take responsibility for any negative impact resulting from the application of these concepts or ideas. Readers are advised to exercise their own judgment and discretion when implementing any information provided in this article. The author recommends seeking professional advice or conducting further research before applying the concepts or ideas discussed here to make them suit your exact needs. The author shall not be held liable for any consequences or damages arising from the use of the information presented in this article.

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