Five tips for juggling eels (a.k.a. raising money for a startup business)

Mobiflock makes smartphones and tablets safe for children, individuals and businesses, by providing services to monitor and manage mobile devices, secure private information, manage mobile workforces, and protect devices from viruses and malware.

GigaOM named the company one of the 10 most promising mobile startups in 2011, and they were recently awarded first place in the first South African This Week In Startups pitch contest, hosted by well-known investor and entrepreneur Jason Calacanis.

In the article that follows, Patrick Lawson, founder of Mobiflock, shares the lessons he has learnt while raising angel investment for the mobile safety and security startup, and reflects on how hunting down money has changed in the last decade, since his days at Clickatell.

1. It doesn’t get any easier

Geoff Hainebach, Clickatell’s former chairman, said to me that it was tough raising money a decade ago, but that it’s since become ten times tougher. That’s not to say it’s impossible, though; but it does mean that today, compared to when we were raising angel funding for Clickatell, tracking down investment takes up even more of your time, energy and focus, taking your attention away from your fledgling business when you can least afford it.

2. Don’t plan for funding

Don’t see funding as the make-or-break tipping point for your company. In fact, plan to not get funded at all, and rather to build a solid, sustainable business that can stand on its own two feet. View funding as the bonus that allows you to super-size or accelerate your already healthy business.

Having said that, things will inevitably take far longer than you expect or hope in a bootstrapped business. Plan for this both mentally and financially.

3. Dance to your own tune

By all means take advice from several quarters, but always remain true to your ideals. Don’t be put off if you don’t tick the current “funding flavour of the month” checkboxes – as long as you’ve done your homework, identified a distinct market need and proven your concept, of course.

If you’ve followed tip 2, you’ll be able to hang tight until you find a funding partner that is aligned to what makes you tick, at the right time for your business, rather than having to force a fit. Or you might even realise you don’t need to raise funding at all. There are no one-size-fits-all scenarios in this game, and no right or wrong ways to do things, so rather stay authentic.

4. Focus

You’ll have a thousand and one possible distractions bombard you from all sides, not to mention you’ll soon discover that fund-raising is a full-time job. Stay focussed on your business goals and specifically on getting that first rand of revenue through the door. Having said that, keep nimble so you don’t miss out on new developments in the market.

5. Get involved

One of the biggest changes I’ve noticed when comparing getting Mobiflock out of the starting blocks to launching Clickatell just over a decade ago, is the opportunities we’ve had thanks to the nascent entrepreneurial community developing in Cape Town and South Africa. As this grows, these opportunities are going to be key for future startups. In addition, it is possible to tap into resources and communities abroad as well, thanks to, amongst other things, social media making the world a much smaller place.

For the Mobiflock team, however, the work starts now to ensure we unlock the potential we have created, and to become a local success story.