Every business requires a portion of ambition and dedication along with the main ingredient i.e. money which makes the business sustainable. One has to be smart while funding a startup, therefore he/she must know about some myths about startup funding.
Just build a good product
Just focusing on building and developing an image of the product won’t help the marketers. Building goodwill and reputation in the market is of utmost important to gain the attention of the investors. The focus should be divided between the product, the complete business, and the future opportunities.
Go for the first option
Choosing the first offer is not essential. One must take time and review all the details & information, check the terms and conditions properly, and analyse it. It would be a wise decision to consult an expert so that it becomes easy to understand the financial points of the deal.
Depend on investors’ money
The startup owners must make sure that they are dedicated towards their venture which should be seen & noticed by the investors. Only then they will invest in your startup, for you to go ahead.
Investors asked me to come back later for funding
Well, if the investors did not like you, they will not ask you to come back later. When they ask you to visit them later you should be prepared with a presentation or a plan that will overcome their obstacles and help them to go ahead with their investment procedure.
Also read about start-up’s open office culture.
There’s no money out there!
The biggest myth is that there is no money in the market. There are investors, old borrowing sources, venture capitalists, government grants, crowd funding, and so many other sources from where money can be drawn. One needs to do some research, attend networking sessions, read business trade and contact the sources.
Explain the investors in detail
The investors don’t have time to see your 85-page presentation. Therefore the startup owners must make sure that they limit their presentation, be relevant and to the point while explaining. The essential point is to explain what makes your product or service different from others.
My startup will be fine, thanks to my family money
Inventors from the family can be a cautious approach as the combination of family members & business becomes sensitive. This combination makes the working of the business very uncomfortable and slow.
