How do you convince investors that your business model will really work, before you have a revenue stream that exceeds your expenses? Even if you are bootstrapping your business, and you are the only investor, you should be asking yourself the same question.
Venture capitalists (VCs) have long been seen as the top of the pyramid for startup funding sources, but in fact angel investors now fund over 60 times as many companies, according the Center for Venture Research.
What do venture capitalists and angel investors cite as the common cause of the failures in their portfolios? That’s a great question, which somebody posed in Quora. And as I write this post, it has several really interesting answers.
One of the most frequent questions I get as a mentor to entrepreneurs is “How do I find the money to start my business?” I always answer that there isn’t any magic, and contrary to the popular myth, nobody is waiting in the wings to throw money at you, just because you have a new and exciting business idea.
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