We have compiled a list of some practices which seem sure to kill your chances to attract investors. Ignore these lessons at your peril.
* Poor market research, weak business plan
* An unfocused, "shotgun," approach to which venture capital sources to approach
* Does not have enough seed capital dedicated to the capital raising effort
* Does not allow ample time for raising the capital
* Seeks too much capital, or sets too large a minimum initial investment for the project or company.
* Does not have enough of their own capital committed to the project.
* Does not have a clear picture on the use of proceeds.
* Does not have a rate of return projected on the investment
* Does not guarantee an exit strategy for the investor
* Does not have a solid management team put together
Even when early funding is secured, the entrepreneur can make strategic errors that make follow-on investment less likely
* Does not raise sufficient capital early enough in the game.
* Engages in spending capital before adequate capital is secured.
Denied traditional routes to venture funding, many entrepreneurs will turn to techniques that are often called "guerilla" financing:
Business Opportunity ads. Place advertising in a local newspaper or a national publication featuring such ads. State the amount of money requested, the type of business involved, and the kind of return being projected.
Investment