Looking to start your own company? Need to raise some much needed capital to get it off the ground? Well I have to websites you should take a look at before you go rushing off to your next VC meeting.
The simple fact is that fewer than 2% of entrepreneurs with a good idea make it into the second meeting with a perspective VC or Angel. Less than 1% get funded. Why are the odds so bad? Well there are many reasons, but probably the most common one is because the entrepreneur failed to do their homework. Unlike the days of the dot com boom, today's investors are scrutinizing every proposal carefully. Few fund Series A rounds themselves, and most all now require syndication with other VC or Angels.
No longer is the attitude "Hey I'm this great engineer with 30 patents to my name and a really cool idea" cutting it (as if it ever really did) in today's economy. Plainly stated: Investors invest in a business, not a technology or product. If you want to get capital, you need to do the work necessary to produce a compelling business plan. This means doing your market research, pro forma financials, and having a core team picked out and ready to go, and that's just the beginning.
To help you, I'd recommend these two websites as a good starting point: VentureHacks and The Funded. Both are an excellent forums where you can hear advice from other seasoned entrepreneurs and CEO's who have already successfully raised money for their companies. The Funded does require a membership to get access to all of the information on its site, however some information accessible to anyone. VentureHacks is totally free and fully accessible.
Be sure to check them out, happy reading, and good luck!
The simple fact is that fewer than 2% of entrepreneurs with a good idea make it into the second meeting with a perspective VC or Angel. Less than 1% get funded. Why are the odds so bad? Well there are many reasons, but probably the most common one is because the entrepreneur failed to do their homework. Unlike the days of the dot com boom, today's investors are scrutinizing every proposal carefully. Few fund Series A rounds themselves, and most all now require syndication with other VC or Angels.
No longer is the attitude "Hey I'm this great engineer with 30 patents to my name and a really cool idea" cutting it (as if it ever really did) in today's economy. Plainly stated: Investors invest in a business, not a technology or product. If you want to get capital, you need to do the work necessary to produce a compelling business plan. This means doing your market research, pro forma financials, and having a core team picked out and ready to go, and that's just the beginning.
To help you, I'd recommend these two websites as a good starting point: VentureHacks and The Funded. Both are an excellent forums where you can hear advice from other seasoned entrepreneurs and CEO's who have already successfully raised money for their companies. The Funded does require a membership to get access to all of the information on its site, however some information accessible to anyone. VentureHacks is totally free and fully accessible.
Be sure to check them out, happy reading, and good luck!
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