Over the years I have worked with and spoken to over 100 small business executives about their capital formation activities. Honestly, most of them were not successful in meeting their fundraising goal(s). For a capitalist like me, that is difficult to witness.
The stark reality is that the high majority of small businesses and start-ups have to settle for far less capital they had envisioned would fuel success. It wasn’t for a lack of trying…
Where I have witnessed people succeed:
– Getting outside of their existing network.
– Focusing on the natives. Rarely do people invest in something they don’t have a personal connection to / or knowledge of.
These may sound obvious, but the fundraising desert is littered with skeletons of those that thought they could dazzle and educate investors that have no familiarity with the product or industry.
– Passion. This isn’t a tough one for most entrepreneurs, but using it appropriately is much more rare.
– A team. Successful fundraisers are completing the task with at least two people.
– A roadmap. The best deal makers know and understand the timeframes to execute the deal at hand.