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Mistakes New Entrepreneurs Make

Published: 2/13/2008 12:12:16 PM

This post is the beginning of a series of topics related to the mistakes that I've seen new entrepreneurs make in starting and operating their technology companies.

One mistake relates to their funding search.  Granted, the funding search is usually a difficult and hard to understand process.  Entrepreneurs make the mistake of approaching potential investors in a serial manner, rather than parallel.

You should try to obtain a significant "universe" of VC firms or angels and create a spreadsheet or other way of tracking your progress, and decide to approach a number of them at once.  Finding funding is sometimes a numbers game - you just have to go through enough investors to get to the ones that "get" your product or service.

I'm not advocating a "buckshot" approach where you simply contact all potential investors at one time.  I would suggest that you start off with 3 to 4 targets and get a few presentations under your belt.  You will also hopefully get some feedback on your presentation and company concept that you can then use to improve your future presentations.  At that point, go out to one third of your target investors in the next traunch.  Rinse and repeat from there.

Approaching investors one by one is a recipe for losing momentum and putting your startup at risk.

Don Jones

VentureDeal

 

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Don Jones
CEO, VentureDeal

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