Entrepreneurs have numerous options for obtaining funding to explore and validate their startup concept.
Topic: How to Get Funding
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David S. Rose, the CEO of Gust and Founder of the New York Angels defines Due Diligence in his book, Angel Investing – The Gust GUIDE TO Making Money and Having Fun Investing in Startups. The careful investigation into a company prior to making an investment.
“We filter out half of these qualified interviewees in the first minute.”
Avoid the purgatory of being non-fundable. Find out the investor’s view and structure of their balance sheet in an “investor friendly” manner before submitting an executive summary to startup investors.
Concept stage startups are usually funded by entrepreneurs, family, friends and individual angels. An opportunity has presented itself to you, an idea for a scalable business you see clearly in your mind. How much is your idea worth? It all depends on what you do with it.
The entrepreneur seeking investment from major corporations with investment arms should recognize there are many advantages to seeking and obtaining such investment. However, such investment should be sought with the entrepreneurs’ having a strong understanding of their startups objectives and opportunities, and the strategy and fit with the potential corporate partner.
The key is that they are engaging and actively seek to understand all potential alternative points of view in the decision-making process.
If this research were to uncover the ‘secret sauce’, entrepreneurs could prepare accordingly and drastically increase their probability of successfully acquiring the funding.
Receiving investment from angels can be a daunting, time consuming process, one that is inherently inefficient. Experienced entrepreneurs take steps to minimize these funding inefficiencies.
An entrepreneur without funding is a musician without an instrument.― Robert A. Rice Jr.