4 Tips from a Venture Capitalist for Entrepreneurs Seeking Investment

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Let’s face it: Fundraising has never been easy, especially for early-stage entrepreneurs or new fund managers. 

On one side of the table sits millions of dollars. On the other, an unproven idea. Your job is to convince the people with the millions that your idea is worth the investment. It’s daunting, to say the least. 

Then COVID-19 hit, which made fundraising even harder. Now you’re doing the same unnerving pitches through the shaky lens of a video camera. 

Even worse, the percentage of capital going to early-stage companies — with fundraising size of $5 million and below — has been dwindling over the past decade. And last year, only about 160 venture capital funds were raised in the U.S. by emerging managers, the lowest amount in the past eight years.

To successfully raise money in this environment, you have to take a long-term view of the process.

Fundraising is not a one-time event. It doesn’t start the day you put your deck together and end when the money is safely in your bank account. It starts long before you need an investment, and it never ends as long (Read more...)