venturcelerator
Entrepreneur Myth #2: If you’ve got a great idea, raising capital from angels and/or venture capital is easy
If you’re an entrepreneur and you’ve got a great idea, the journey to fund your venture doesn’t depend on the greatness of your idea. I’ve seen stupid ass-stuff funded which was beyond my comprehension, and I’ve seen great ideas suffer from not being funded.
This entrepreneur myth continues to propagate like a physical virus. Even experienced business people will catch the bug at times, but newbie entrepreneurs are completely at risk.
If you’ve developed a great idea, don’t expect to be able to raise capital overnight. The amount of unknown variables involved in the funding process is enormous. I will say that besides coming up with a great idea and assembling the right startup management team, raising capital is the hardest thing you’ll do as an entrepreneur.
The process of raising capital is like going to a dentist. It is very painful. I’ve done it enough to absolutely hate it because of all the bullshit that occurs. Raising capital from angels is not easy but at least you’re most likely talking to an entrepreneur who’s made it, so at least he or she can sympathize.
Raising capital through Venture Capital is extremely painful. Don’t get me wrong. VC’s are people too. The painful part is their long decision process. To certain extent, I don’t blame them since Venture Capitalists are using “other people’s money” and they have to make sure they make sound investment decisions.
Raising capital is like having a baby. I’ve talked to thousands of entrepreneurs and funded more than thirty, and the time it takes to raise capital averages 9 to 12 months from what I’ve seen and experienced. Miracles can happen. I’ve raised capital in 24 hours or less. I raised one hundred million dollars in three hours with just a paper napkin presentation, but I’m not sure I could repeat it again. From what I’ve seen, funding miracles are few and far between. Don’t count on it.
I have succeeded and raising capital and I have failed in raising capital more times than I can remember. The secret to raising capital is this: it’s a numbers game… but you must have lizard-like skin.
1. What are some of the entrepreneur myths you’ve learned being an entrepreneur?
2. What do you think about the raising capital process? What have you learned from it?
3. Do you enjoy raising capital? Do you have any good stories to tell about it?
Entrepreneur Myth #3: The Entrepreneur Risked It All to Make It
SUBSCRIBE to PODCAST: Entrepreneur Myths on iTunes
This entrepreneur myth continues to propagate like a physical virus. Even experienced business people will catch the bug at times, but newbie entrepreneurs are completely at risk.
If you’ve developed a great idea, don’t expect to be able to raise capital overnight. The amount of unknown variables involved in the funding process is enormous. I will say that besides coming up with a great idea and assembling the right startup management team, raising capital is the hardest thing you’ll do as an entrepreneur.
The process of raising capital is like going to a dentist. It is very painful. I’ve done it enough to absolutely hate it because of all the bullshit that occurs. Raising capital from angels is not easy but at least you’re most likely talking to an entrepreneur who’s made it, so at least he or she can sympathize.
Raising capital through Venture Capital is extremely painful. Don’t get me wrong. VC’s are people too. The painful part is their long decision process. To certain extent, I don’t blame them since Venture Capitalists are using “other people’s money” and they have to make sure they make sound investment decisions.
Raising capital is like having a baby. I’ve talked to thousands of entrepreneurs and funded more than thirty, and the time it takes to raise capital averages 9 to 12 months from what I’ve seen and experienced. Miracles can happen. I’ve raised capital in 24 hours or less. I raised one hundred million dollars in three hours with just a paper napkin presentation, but I’m not sure I could repeat it again. From what I’ve seen, funding miracles are few and far between. Don’t count on it.
I have succeeded and raising capital and I have failed in raising capital more times than I can remember. The secret to raising capital is this: it’s a numbers game… but you must have lizard-like skin.
1. What are some of the entrepreneur myths you’ve learned being an entrepreneur?
2. What do you think about the raising capital process? What have you learned from it?
3. Do you enjoy raising capital? Do you have any good stories to tell about it?
Entrepreneur Myth #3: The Entrepreneur Risked It All to Make It
SUBSCRIBE to PODCAST: Entrepreneur Myths on iTunes
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