Posted on 04/10/2019 in Capital Raising by Stephanie May

Don’t Raise Capital Unless You Have To


Don’t Raise Capital  Unless You Have To

Don’t Raise Capital Unless You Have To


Raising capital is a very serious undertaking. The mere act of raising capital turns any business model into a much more complex one, and reduces your overall chance of success. Be ready to commit the time and resources to complete and document your business plans. You have to take the time to learn what you can and can’t say, and what you must do and what you should not do to stay compliant with securities laws. You’ll need to hone your communication skills and commit to the time to develop your offering documents and pursue investors, and you should be prepared – both mentally and financially – to sell a percentage of your business.

Experience has shown that the success rate of those raising $1,000,000 or more the very first time is less than 5%. And more fun facts to share – the odds of raising $5,000,000 or more from venture capital funds, building a profitable business, and then selling it at a price that gives your investors a great return is probably about 1 in 10,000. That’s right...for every Steve Jobs, Bill Gates, and Mark Zuckerberg out there, there are 9,999 other very bright and hardworking people who tried for a home run and struck out.

Focus your efforts and resources to get your business into revenue producing activities as quickly as possible. Help your whole team to adopt a relentless pursuit of financial stability, consistently setting the right examples in everything you do. If possible, use your own funds or money from your family and friends, constantly working towards financial stability.

If you decide it’s worth it to expend the effort and undertake the risk of raising capital, then keep reading:

Free Report:  10 Things Successful People Know About Raising Capital by Stephanie May and Jon Taber.


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