The surge in popularity of LinkedIn among professionals has made it a key platform for founders to connect and share their experiences. As the most listed job title among Fortune 500 companies, founders are utilizing LinkedIn to not only provide business updates but also to offer advice and personal stories. However, for founders in the midst of fundraising, the question arises of whether spending time on LinkedIn is beneficial or detrimental. Managing Director of BFG Partners, a venture capital firm specializing in early-stage consumer products, suggests treating LinkedIn thoughtfully as a tool to provide valuable insights to potential investors.
For consumer packaged goods (CPG) founders looking to raise funds, there are key dos and don’ts to keep in mind. Networking for a warm introduction is crucial, demonstrating resourcefulness to investors. Additionally, letting your product speak for itself by offering samples can make a strong impression. Being transparent about mistakes and showing what you’ve learned is essential, as investors value the ability to adapt and grow. On the flip side, it’s important not to waste time talking about industry basics in presentations and to carefully navigate the timing of investment decisions.
One of the key points to remember is not to rush the fundraising process. Venture investments can last for several years, and building relationships with potential investors takes time. Overpromising and under-delivering is a pitfall to avoid, as it’s crucial to provide realistic projections and concrete plans for success. Strategic planning and transparency are key to securing investors’ trust and confidence in your business.
Overall, it is important to approach every aspect of your investor strategy with intentionality. Digital platforms like LinkedIn offer opportunities for engagement, but the impact you make on them requires thoughtful consideration. Building strong relationships, showcasing your product’s strengths, and being transparent are essential habits to cultivate. Conversely, avoid wasting resources on unnecessary deck content, rushing the fundraising process, or making promises without solid plans in place. By following these dos and don’ts, CPG founders can navigate the fundraising process successfully and attract the right investors for their growth.
