Fall is often known as the season of plenty… for me, it was the month of plenty events for entrepreneurs. Last week I went to 4 (and probably said no to several more). Monday was a local angel group monthly company pitch. We are blessed to have 6 formal angel groups here, plus several […]
On October 10th I attended Demo Day of the 2nd cohort of MetLife Digital Accelerator powered by Techstars. I don’t believe that this well-run global accelerator program gets the exposure and recognition it deserves locally but today’s post is just about the pitches themselves. Big pitch events like this one, this week’s Venture Atlanta or CED Venture Connect Summit are designed to […]
As I have written before, raising equity capital is hard and not for everyone. The first round after your friends, family and fools’ round is really hard if you haven’t done it before or don’t have a high net worth network. For most companies who need to raise capital, the first money in will come from angel investors. But angel investors are not a homogenous bunch.
In Part I of this series I outlined why your seed stage company may not be investable (and some alternatives if it’s not). In Part II, I’ll look at why venture capital firms may not find your company backable.
Getting no from too many investors?
Raising equity funding is hard. It’s twice as hard if you don’t have a strong network or a track record of success in starting and scaling a new company. If you haven’t raised equity funding before, have a new startup and aren’t able to get “yes” from any new investors this perspective may be helpful.
Every entrepreneur who is raising equity capital is going to spend a lot of time and energy on the valuation question. What is my company worth? How much equity is reasonable for me to sell? How do I ask for a “fair and reasonable price”? A few thoughts he/she should consider are below.