I have a company called Emilia George, a retail and lifestyle brand concept that I developed two months after my PhD and a month before my eldest son was born while I was working at the UN.

I was the last stranger. As a first-generation American living in Manhattan, I had neither a home in the Hamptons nor a family connection to private school boards. I never tried to lose the baby weight (twice) and put on makeup less than five times a year. I didn't have a business or fashion degree. Yet here I was – launching a brand in a market that is the hardest for even the rich and powerful to crack.

And just like that, we had almost half a million in revenue in the first year (and during Covid). We were profitable three out of four years; the only year we weren't profitable was when we had a lot of non-recurring costs in the brand agency, opening our first mortar. I've built an incredible team that's with me day and night, and we've successfully recruited multiple summer interns from Harvard Business School and Columbia Business School—round the clock. bootstrapping business.

Every business raises money for different reasons and deals with investors differently. I believed that it was time to raise funds for my company only when we had developed a profitable model and were prepared to scale up. business innovation.

I have done angel investing through SPVs and direct investments into six figures. Now, speaking from the other side of the table, I've learned so much in the first three months of getting our business ready to raise funds and start receiving soft checks and commitments. There are things you can only know when you start the process.

Connected: 3 things I learned in the first 3 months of starting my company

Every investor response is a blessing – and don't take it for granted

As someone who did not come from business financing ecosystem or graduated from schools where target funds are willing to invest, I took the general solicitation route under SEC 506(c). This means the company must take additional steps to verify an investor's accreditation status before they can invest. There are online services that quickly provide such accreditation.

While we dream of “Yes,” a “No” is the next best thing. It saves time and provides insight if you are talking to the right person investors for your business. If an investor decides to share more information on the reasons for “No”, I consider it a blessing. All the feedback on the funding scene, sector interest and investment thesis helped me further narrow down the list of investors to approach. Time is the only capital that is too expensive to dilute.

Focus on angel investors who also have strategic value

Countless LinkedIn profiles have “investor” in the title. Some may meet the criteria to be considered an “accredited investor” established by the SEC, but others may not. Are you looking for direct investment or working with a fund that offers investor membership so you can always invest in an SPV with a much smaller control size? I have personally found that angels who bring strategic value, whether in an area of ​​expertise or network resources, are invaluable. Each strategic partnership that brings in an investor can be five or six figures. The same mindset when people give huge capital to Sharks on Shark Tank because they are strategically important. That said, due diligence should be done on any investor you talk to or share your business with. Going back to the countless LinkedIn profiles with investors in the title, not all of them are accredited or active. Be wary of anyone who approaches you first because, more often than not, they have a service to sell you. Usually, when someone is raising funds for the first time, they can also benefit from exploring advisor options. Focusing on strategic investors is so impactful if you're really in it for the long haul.

Connected: Why investors with an entrepreneurial background are crucial to startup success

Go slow – protect your brand

When my VC friend told me to prepare at least six to 18 months for a round, I said, “No way!” Afterwards, I heard founders tell me that they've been fundraising for over three years, or have been fundraising non-stop from the day they started the business to the day they went out of business.

Building a successful brand takes a lot of money; Protecting a successful brand takes a lot of money and more than just money. Techcrunch articles certainly don't help founders be patient with all the great fundraising success, though no one talks about the long process and how much family and friends may need to help move forward. Babba, Ceremonia's founder, mentioned during a recent fundraising event that she raised $1 million from family and friends to get started. The brand is sensational and was very candid about how her journey began.

The point is to do your best to position and protect your brand so that you are ready to face the judgment of external players (good or bad). Once you expose your brand to others and ask for money, it is impossible to de-expose it. You must be persistent and resilient enough to maintain your rating.

There is only one chance to make a first impression. The question founders often don't ask themselves enough is, “Why raise?”