Entrepreneur and CEO of Spa Girl Cocktails Alisa Marie Beyer has done her share of raising capital for multiple companies. After closing her latest funding round for Spa Girl Cocktails ($2 million), Alisa realized when it comes to looking for funding for a women-owned and led company, the playing field is still not level.
After over 200 pitch meetings, Alisa learned what she needed to do to not only get the necessary capital for Spa Girl, but help every other female entrepreneur on her journey to securing funding, and that is: think like a man, but execute like a woman.
“It’s well-past time for women to get a bigger slice of the funding pie,” Alisa believes. “I think this is possibly the most difficult part of running a business, growing a business or acquiring a business and that is funding it.”
Alisa can provide insight into her first-hand experience in raising capital and share her old way to approach funding vs her new way.
Alisa’s Old Way to Approach Funding
- Focus on my products
- Focus on me
- Focus on trying to create an emotional connection to my business with investors
Alisa’s New Way to Approach Funding
- Focus on the facts and figures
- Cut my words down by half…and then half again
- Utilize industry insiders and allies to build strong networks
A few old school items are still important during the ask. “Yes, a polished deck is important, rapid sustainable growth is required, significant market size and scale vital, and proven path to profitability mandatory,” Alisa outlines. “But the real way to ensure that you get your capital is to create a network of supporters who personally want to see you succeed and are willing to tell you what you need to do to get there. This is the network that will challenge your pitch approach, rip apart your deck, request real-world and validated financials, and ask the hard questions. In short, they make sure you are truly buttoned up and investor ready.”
Alisa provides 3 Steps for a Successful Capital Raise:
Step #1: Focus on facts and figures. “Rather than going down a rabbit hole of storytelling about the secret sauce behind my products or telling a romanticized version of my life’s story, I honed in on the raw data that matters most: the facts, figures, stats, and milestones of the company to date, and what they mean to the investor,” Alisa advises. “As we all know, talk is cheap—but numbers tell a concrete story every investor wants to hear.”
Step #2: Cut words down by half. “This one I mean literally. Every pitch deck I ever created prior to Spa Girl was long…slide after slide of information that at the time, I felt was critical but in retrospect (and after watching investors check-out and their eyes glaze over in disinterest), I’ve learned that less is more with a pitch deck. In my case, that meant getting my pitch deck down to two very clear, very compelling pages,” she recalls. “Focus on the data you prepared from step #1; keep to the point whenever possible, and don’t add filler words or information just to fill a page. Instead, use the time you might have spent reading a slide to ask and answer questions, which is far more valuable than too many words.”
Step #3: Build a strong insider network. “Perhaps influencer networks are a reflection of how much business has changed, but these days, a strong insider and influencer network can make all the difference in trying to secure an initial investor meeting, and getting one,” Alisa recommends. “In my case, I pursued relationships with leading influencers in the beverage industry to help guide me in how I approached pitching to investors: what are the pain points? What matters and what doesn’t?” Plus, influencers were able to further expand my network by introducing me to potential investors and others who were in the position to help me hone my approach. According to Small Business Trends, entrepreneurs with a mentor are five times more likely to start a business so get out there and find one.
Dedicated to helping female entrepreneurs, Alisa just presented to the Women of the Vine & Spirits organization on “The Art of the Raise: A New Approach to Raising Capital for Female Entrepreneurs”.
“As an entrepreneur, I passionately believe in the drive and determination of women, and in supporting other women on their entrepreneurial journeys,” she says.
