Some Common Misconceptions about Fundraising
One common misconception about fundraising is that you must know an investor before you can approach for funding.\xa0 It\u2019s best to have some validation from your own group before approaching those outside of your core. Start with your current network and work out from there.\xa0\xa0 Identify the right type of investor for your deal based on risk and return.\xa0 Angels wants three to five times their investment. Venture Capital wants 10x their investment.\xa0Family Offices want five times their investment but are often more patient for the return. Choose the right investor for your raise and then find those investors and initiate a conversation. Later follow up and build a relationship. Another misconception is that once an investor has said \u2018yes\u2019, then it\u2019s a \u2018done deal.\u2019 In most cases this is not so.\xa0The \u2018yes\u2019 marks the start of the diligence phase which in most cases lasts 4 to 8 weeks. \xa0 Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding. Let\u2019s go startup something today!