Photo: George Eastman via Flickr
Yesterday I received a discouraging note from an entrepreneur with a patent and a medical software application who couldn’t find a dime of investment and was grousing that seed funding just wasn’t available anymore.After exchanging a couple of notes, I concluded that she was more likely a victim of item #1 on my reject list, rather than a drought in seed funding.
Too many people still believe the urban myth that you can sketch your idea on a napkin and people will throw money at you. Fundraising is indeed brutally tough at all stages, and the seed funding is the hardest to find.
The simple answer is that if you need funding, do your homework early and completely.
I seem to see common threads in the stories from people who don’t get money, so I checked my list against ones from Brian Emerson, president of Starlight Investments, as quoted in a new book by Barry H. Cohen and Michael Rybarski, titled “Start-Up Smarts.”
We agree on issues we see sabotaging most funding efforts, in decreasing priority sequence.
Click here to see the top 8 reasons why your business can’t get funding >
Martin Zwilling is CEO & Founder of Startup Professionals, Inc.; he also serves as Board Member and Executive in Residence at Callaman Ventures and is an advisory board member for multiple startups. This post was originally published on his blog, and it is republished here with permission.
Any serious investor will perform a thorough review of your business and personal background before signing the check. They don't like surprises, so you should explain any possible issues first, in the best possible light, before being asked.
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