LOUNGER FEATURE
Every no is one step closer to a yes .
You will be rejected . Don ’ t take it personally . Angel investors and venture capitalists are programmed to say no . I like to think they mean , “ no , not right now .” Don ’ t get your feelings hurt or your feathers ruffled . Try to get feedback about why they are saying no . If you believe in your idea and it is actually a good business idea , you can get it funded . In my experience , good deals get funded . Period . Be creative . Be passionate . Be persistent . If your deal is not getting funded and you are working hard , take a look at yourself and your business versus blaming the venture capital industry for a lack of vision .
Raise more money than you think you need .
Once you make the decision to raise outside capital , raise a sufficient amount of money to get you to your next major milestone , even if you incur a slip in your schedule . Having an extra six-month of runway can make a world of difference in the life of your company and your personal health .
Use the scarcity model .
Not to be mean , but venture capitalists are like lemmings . They follow each other . This is part of a reflection of the make-up of limited partners and partially due to the collegial nature of how the venture capital industry has evolved .
Give up as little control possible .
This is a little tricky . Venture capitalists are very sophisticated . Make sure you have a strong corporate counsel for your firm , and that you understand the latest trends in deal terms . Way to many entrepreneurs get caughtup in valuation and don ’ t spend enough time thinking through deal terms , including employment agreements for the founders . Spend the appropriate amount of time and effort on all aspects of the deal . You won ’ t regret it later .
Always promote your startup .
As a CEO , you are the head cheerleader and motivator for your company . You need to always be selling . You are selling to your board , your team , your employees , your investors , your customers , your strategic partners and other key company stakeholders . If you are at a cocktail party , always be ready to give your elevator pitch , and give it with enthusiasm . Even when you are not officially in fund raising mode , you should always be looking over the horizon for your next financing . Build relationships . It will pay off when you are ready to raise your next round .
info @ questfusion . com phone ( 858 ) 436-7131
Like any sales , if you can create scarcity for your deal , you will garner more interest . You can only use this once , so don ’ t fake it . Find an anchor tenant for your deal , and use that as a catalyst to drive a financing to completion . Even if your first term sheet is not the final one that you go with .
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