Business Opportunities Weblog

February 2, 2006 by Dane Carlson | 0 Comments

Ian Patrick Sobieski, managing director at Band of Angels, in Startup Journal:

1. When raising money clear and well thought out communication with investors is critical. Good communication involves a careful balance between being sure the reader or listener is informed and intrigued, but not so much that they become confused and miss the salient point.
2. Planning is essential but plans are useless. You have to always be ready to change your plans in the source of new information and be on the look out. Be vigorous in looking for new information and challenging the assumption and details of the plan you are executing on.
3. Don’t raise money from others unless you absolutely have to. Some of the best businesses are bootstraps. Don’t assume you have to raise venture capital. Raise capital only if your plan requires it and you have exhausted every other creative alternative.
4. Plan for playing the game again. Most entrepreneurs start more than one company, the best way to raise money in the future is to have treated your investors today well.
5. Be careful who you marry. Not all angels and venture capitalist are the same. Know the temperament, risk tolerance and sophistication of people you’re going to take money from. Once investors give you money the glow of the honeymoon will wear off soon and you have to have what it takes for the long hall.

In Financing | 0 Comments