Ten Ways to Increase Your Chances of Raising Venture Capital

Published: 1/29/2007 10:02:20 AM

#9 - Accept the fact that there are outside forces at play and beyond your control

While it may seem personal to you, most of the time there are outside influences which impact the marketplace and either assist or impede your ability to raise capital.  Keep this in mind when talking to investors and accept that this sometimes happens.

Most entrepreneurs have a pre-conceived notion of dealing with very early stage venture investors or angels - they take too long, they ask a bunch of wrong questions, there's too many people involved, I can never figure out what is happening.  At various times, those sentiments may be true.  Getting early stage money is usually hard to do for two reasons: (1) because your company is hard to gauge the value for and (2) because there are many reasons unrelated to your company that investors choose not to invest.  Those reasons can include: they've soured on the space, they have other more interesting investment opportunities, they're waiting for other investments to mature or realize, they're busy with non-investing activities or they've made a number of investments recently and decide to take a break.

Getting investment can be like sales - it's a numbers game - the more people you talk to, the less you're beholden to one investor or group and the greater your chances of securing investment.

Don Jones


Don Jones
CEO, VentureDeal

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