5 Things Food Tech Startups Seeking Series A Funding Should Know
/Series A funding in the food and beverage industry is essentially the second stage of startup financing, and the first stage of venture capital financing for a business. Series A is a form of equity-based financing that secures capital from investors by selling shares. But food and beverage tech founders face many challengers when pursuing series A funding; it’s a process which requires careful consideration and complex negotiation. So if you’re a food and beverage tech startup, here’s your all important series A funding checklist.
1. Investment Materials
Investment materials should be top of your priority list on your journey to series A funding. You believe in your product and you believe in what it does, but you need to make sure that’s communicated effectively and with professionalism. Just because you understand the granular detail of your product and how it operates doesn’t mean prospective investors will. Carefully break down the component parts of your offering. And work hard to present aesthetically pleasing branded content. Your presentation deck should be professional and consistent. Your presentation memo should be a clear, precise articulation of your product. And your verbal pitch should be coherent, interesting and connect with your visual presentation materials.
2. Think About Software
Investors are looking for rock hard data, a clear business strategy, and true business readiness. In the food and beverage tech space, regulations are commonplace. And investors need to know that you’re meeting all evolving FDA and governmental regulations. For example, if you’ve developed am innovative food product, show how you’ve invested in traceability software and demand planning software. It will prove you have a safe and sustainable business model.
3. Scalable Business Model
A scalable food and beverage tech business is one that can be served to exponentially more people without incurring an exponential number of operating costs. If your business meets this premise, you’re certainly in good shape. It’s important to articulate to series A investors that you hire strategically, you’re tactical and you invest in technology. Software automation tools are a solid way to prove this; it proves that your food and beverage tech company is willing to reduce the amount of labor required while forging growth.
4. Finding the Right Investor
Securing series A funding is not just about the money. It’s important to find an investor that’s your missing puzzle piece. Prioritise your company’s brand and its culture and you’ll be standing in a strong position at the end of the negotiation phase. Also do your research, you should know all about where your money is coming from.
5. Momentum is Everything
Series A funding will be secured by those food and beverage tech startups who are building momentum. Momentum makes investors excited. And this can come from PR and marketing campaigns, or through business metrics or important hires. You need to show the world you’re going places, and that you’re exceeding expectations. If you can truly build momentum, the funding will come to you.
Is your food and beverage company looking to scale with ERP, traceability or demand planning software? Get in touch today to learn how CASHMERE can help your food and beverage business thrive in a competitive digital marketplace.
