If you’ve been reading through the post here, there’s a common thread running through all of those focused on fundraising – when going out to raise money, the money is the least important part of the fundraising equation.
That sounds almost counter-intuitive but if you want to build and grow a long-term sustainable business – its not.
Let me explain.
When you are looking for an investment there comes a point where you realize it isn’t going to be as easy as you first thought. When that wake up call arrives, a touch of desperation sets in and most founders start to hustle…mumbling under their breaths…
“Must get Money….Must get money…Must get money…”
Like a mad commercial monk reciting a repetitive prayer, the search for Money – any money, is well and truly on.
The challenge is – in that desperation, your ability to make logical decisions is often lost but (and this is a big one…) if you lock in the wrong money then you are almost guaranteeing your company’s failure.
Yes – the wrong money is the papery green stuff sitting on the palms of the absolutely wrong investor for you….the investor with a different vision of where your company should be going, who it should be serving and what they want to achieve with it.
The challenge is…their money looks exactly the same as everyone else’s but it isn’t – it’s a ticking time bomb, which could cause the ruin of your business.
So how can you tell the difference? I wish there were a checklist, which you could run down and check off the different boxes to determine right from wrong money – there isn’t. Yet this is where that all important word comes in…
If the chemistry is right you’ll know it – and if the chemistry is wrong (if you try to ignore the fact they want to give you money…) you should know that too.
Here’s an article or two of other startup founders that cover some of the key elements of fundraising you should also consider as you go out looking for investor money. Have a read and let me know if you have any questions.
All the best
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