Mistakes New Entrepreneurs Make

Published: 3/5/2008 1:22:26 PM

As part of a series on how to avoid common mistakes that new entrepreneurs make, let's take a look at the funding process, specifically interacting with venture capital firms.

Let's assume you've got your list of VCs that you want to target and are getting introductions to meet with them.  You will encounter a range of reactions, from "I don't get it" to "We're excited about your company."  Most of the reactions will be somewhere in between, and depending on your opportunity, most VCs not only won't invest, but they won't be very decisive about it, either.

Some will say that they want to monitor your progress, some will be frustratingly non-committal and others will tell you "No."  The key for you is to not get discouraged by the quantity of rejection or non-closure.  The are countless stories of successful entrepreneurs who courted 50 - 80 different VC firms before they received financing.

Entrepreneurs make the mistake of not continuing to pursue a high enough quantity of venture capitalists to find the one or two that will invest.  Some successful entrepreneurs will simply create a spreadsheet or simple database to track the status of all their VC contacts.  In that way, it is viewed as a process, much like a sales person would handle their sales pipeline.

Just as sales is typically a "numbers" game, so is attracting investment.  Get enough prospects and stay organized - you'll have a better chance of getting the funding you seek.

Don Jones



Don Jones
CEO, VentureDeal

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