There are a number of reasons startups ultimately fail to obtain funding. The following due diligence showstoppers are often overlooked by the entrepreneur.
How to Build a Winning Team
How to Create a Strategy, Vision and Mission
How to Create an Advisory Board
How to Get Funding
How to Improve Your Company
How to Improve Your Pitch
How to Start Your Company
Entrepreneurial Ecosystem Spotlight
Startup Accelerator Spotlight
Startup Investor Spotlight
Business Startup Spotlight
Entrepreneur Events Spotlight
University Entrepreneurial Program Spotlight
Women Entrepreneurs Spotlight
As Angels and VCs are tightening their fists, entrepreneurs are less likely to get next stage funding. Having a great team, pitch and front man are simply not enough.
I can confirm that not only will you increase your network with more successful individuals, you’ll form great relationships, learn from others about what it takes to become a great investor, and (maybe) get an early entry into the exciting and inspiring world of venture investing. You’ll also get a better sense of the big picture of the whole investment cycle.
The entrepreneur seeking investment should recognize the advantages of obtaining such an investment. However, the endeavor needs entrepreneurs to have a strong understanding of their objectives, opportunities, strategy, and fit with potential corporate partners.
The Billion Dollar Startup Club has 101 companies as of July 2015, with the number one private company valued at $46 billion. It’s no secret, technology has revolutionized entrepreneurship. The explosive growth of tech-based companies is at its highest since 1995, surpassing the dot-com boom of year 2000.
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.
The capitalization table (cap table) summarizes who owns what part of the company before and after financing. It is one of the most important elements of the term sheet because it outlines the complete transaction succinctly using concrete numbers.
As the startup proceeds through the due diligence process related to a potential investment from an angel group, VC or Corporate VC, (CVC), the process will include discussions and reference checks with a broad base of the start-ups’ constituents.
Startup due diligence is one of the most important components of the funding process for a new business…
“A term sheet is like a prenuptial agreement and a coach’s playbook. Spend the time to understand the plays, and what happens should you ever separate from the business.”- Mitch Thrower