Event Launch Strategies

OK when it comes to raising capital for a business opportunity, I look at it like this.

Investors won’t offer fair prices until the risk is diminished to a point that the opportunity is about to take off. You have an application or product that has a competitive advantage, huge growth potential, some big and very happy early clients & most importantly you have proven the concept, you have proven the revenue projections through consistent sales and your competition cannot touch you because they are years behind.

In short that’s when you don’t need money so desperately. Before that you’d ask an angel investor to invest their money in your vision. All the bells and whistles aside here, no matter how the deal is pitched an angel investor will want a fair slice of the pie for taking the risk in doing so. Perhaps seasoned entrepreneurs with a few big wins on their plate might not have that much trouble securing funds - but then people who are serious and who believe in themselves unreservedly for the same reason an angel investor would (because they have done it before) would want to fund the early phases themselves anyway, to retain as much of the pie as possible.

Now, if such a person did not have access to the capital required to achieve this then I would be asking why, why don’t they have capital to invest in their own vision and ability, why should anyone else if they cant show past successes has placed them in a position where they can invest in themselves.

So raising capital is complicated, a good association to join is Tiecon.com is a good association to join and their annual conferences are amazing. I’ve been a member for a few years now and have made some great contacts amongst VC’s, angel investors and other great technical entrepreneurs through it.

My rule of the thumb: I don’t attempt to raise capital until I get the startup through phase 1 myself - minimizing the risks and putting myself in a better position to negotiate…

This post has been included in our “Event Launch Guidelines” training program. Click for more information.

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