The 4 Biggest Mistakes Entrepreneurs Make While Fundraising

Raising Finance becomes often a challenging process, especially in an uncertain economic environment. But it could become even harder for some entrepreneurs by committing some mistakes.

There are 3 pitfalls that needs to be avoided.

  • Not following up :
    Once you have meeting with the investor, you can not think job is done. Often investors perform due diligence work that may take some time.
  • Demanding Expensive Valuations:
    Start Up Companies valuation is tricky. It is often hard to back up numbers with the data. 
  • Not Focusing on  Milestone:
    Often start ups focus on how much money they would need but not focusing on what that money will achieve. Investors like to see how money will be spent and milestones are set and achieved.
  • Not building investor network before you need it:
    Developing a network of investors require time and effort in developing relationships. Investor don’t appear all of a sudden when money is needed. It requires lot of conscious effort and work. 

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