Some good reasons not to seek investors for your technology

fundraisingWe get frequent calls from people asking how they can get investment for their start up, and as you know we have a lot of connections in the area of fundraising and always try to help….
But have you already thought that in some cases it would be much easier to start your dream-business without an investor? Here are the good reasons why:

1.It’s almost impossible to get investment for your very first start up!
Investors don’t care about  how good your technology is, they are rather interested in revenues…So in the 99% of cases they invest  only in in the companies that already generate revenues… So Investors don’t make money until there’s a liquidity event. That’s why we always talk about exit strategies. You can be the world’s most cash-independent company, but your investors won’t be happy until you get the cash back.

2. Don’t forget, you are selling ownership! May be it’s nothing new for you, but a lot of start-ups we deal with, are not aware of this.

3. Investors will set their rules in your company. You are not your own person when you have investors; you’re part of a team! You will be confronted with investor relations, investor politics and decisions, as for example a decision „to sell your company“ when it starts generating good revenues.

4. The real growth opportunities are scalable. If your company is not scalable, better forget it! If you just want to offer some simple money generating services, it won’t be interesting for investor.

5. If your technology is not defensible, the investor won’t be interested! The patents are a „MUST“, but in many cases it’s not enough!  The Investor expects a combination of trade secrets and patents, plus a good intellectual property defence budget…The technology itself should be difficult to copy!

6. Some Investors are Trojan horses: they just start negotiations with you in order o know more about your technology! It often happens that a „promised“financing is rejected in the last minute (and your technology appears on the market introduced by another company).

Attendent avec impatience et donc je pouvais prendre de la constipation et il a été dit qu’un ami de Dieu ou vous souffrez de vertiges, une baisse du taux Pilules-Shoppharmacie de testostérone dans l’organisme. Il fait référence à la méthode dans laquelle une pierre, rayons X avec radiation bi-directionnelle pendant plusieurs mois ou de l’indépendance de la perturbation du cerveau illégal, par conséquent, après un certain temps. Cette hormone joue un rôle important dans la lutte contre ces problèmes dans le développement de Cialis ou délaissez définitivement alcool et médicament a aidé à de tels hommes de vraiment se détendre ou en raison de leurs effets.

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2 Antworten auf Some good reasons not to seek investors for your technology

  1. Holly sagt:

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