LinkedIn's billionaire founder debunks 7 common myths preventing you from raising lots of money

Reid HoffmanBloomberg TVReid Hoffman, executive chairman, cofounder LinkedIn

With an estimated net worth of over $US4.5 billion, Hoffman is one of the most successful tech entrepreneurs of all time.

He’s also great at sharing his wisdom, as he did with some of his old slide decks that are full of career advice.

Recently, Hoffman shared another presentation titled, “7 Myths of Startup Financing.”

It explains the most common financing myths and what you should do instead when raising money for your startup.

Raising money should be about more than just getting cash.

If you pick good investors, they will help you with a whole lot more, like making intros and providing guidance.

Having a strong team is great, but don't lead with that.

Instead, open your pitch with your startup's vision.

Just because your friend structured a pitch deck one way, that doesn't mean you should use the same framework.

First, do you want investors to be enamoured by your startup's data or its concept?

Startups are risky bets, but it's best if you don't remind investors of that during your pitch.

instead, identify and steer your risk factors.

Don't say you have no competitors. Every startup has some sort of competitor.

Instead, focus on your competitive advantage.

Don't say you're just like Facebook or Snapchat.

Instead say you're the Uber of X or the Classpass of Y.

Investors are looking for a visionary. Not someone who can only focus on today.

Always Be Raising.

You can find lots of other startup fundraising advice on ReidHoffman's website.

Now that you've seen Hoffman's advice on startup financing...

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