When a capital source really says no, what does that mean? Let’s learn something from this. I tell the entrepreneur, you’ve had a number of face to face meetings with funding sources, and they turned the deal down, and that’s tough. Let’s debrief a…
So, you found an investor that is willing to hear what your company can do and how it will make everyone rich beyond their wildest dreams. Let’s talk about actually structuring and negotiating the deal. The fun really is just starting. Now comes the…
We’ve been talking about entrepreneurs so far and what their needs and realities are, and what I’d like to do is talk a little bit about the other side: investors and what their perception is, particularly when it relates to management teams, and how…
As a business founder presenting your opportunity to potential investors, there are a few key things you should communicate to make your pitch effective. Here are some examples: Clearly define your business: Start by providing a clear and concise explanation of your business, including…
As a business founder seeking capital funding, there are certain things that you should avoid telling investors. Here are some examples: Exaggerating financial projections: It’s important to be realistic about your financial projections and not to exaggerate them in an attempt to impress investors….
The answer is “Yes” if the firm and its team are ready to earn the commitment of investors. In my experience of watching market cycles of more than 20-years, general market conditions, no matter whether good or bad, do not correlate with effective fundraising….
Investors want to see a number of things, but the thing that they want to see the most is your equity story. Your equity story creates so many opportunities for you, not only for fundraising, but as a roadmap for your own success. 4…
One expect that entrepreneurs almost always overlook is the cost of raising money. Most feel it will only cost their time and efforts. Granted, it will cost at least that and more. Consider the following: Direct costs: These are costs that are directly associated…
While the track record of the team and the firm’s advisors are very important, investors usually first focus on the Founder of the firm or the CEO. In general, investors look for CEOs who: In particular, investors look for CEOs with the following characteristic:…