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Why You Will Fail When Raising Money

forbes.com

14 points by bigthboy 17 years ago · 5 comments

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MicahWedemeyer 17 years ago

You will fail because VC money is a myth. It's like winning the lottery. Sure, it happens, just not to you

Build your idea without it. You're building a website, not a nuclear power plant. You don't need a couple million in funding. Get serious.

  • jasonlbaptiste 17 years ago

    It's like winning a lottery if you're raising for the wrong reasons, at the wrong time, or in the wrong market.

    Wrong reasons- Not for growth but to "build a prototype"

    Wrong time- Not seeing growth or the opportunity where the money could clearly make you a leader

    Wrong market- Very few markets warrant VC money. Think again- Can what I'm building have a potential 9 figure exit or 10x money in. That requires a very very big market. "Oh it's a 6 billion dollar market." rule of thumb ill occasionally use with no specific scientific backing: is your TAD (total addressable market) smaller than Google's recent quarterly revenues?

    • MicahWedemeyer 17 years ago

      No offense, but have you personally raised VC money? I see from your profile that you live in Silicon Valley, where they tell me such things are possible (although I'm still highly skeptical). Here in Atlanta it's definitely just a myth.

      For the average Joe here on HN, the chances of raising VC money are about as good as the chances of getting drafted to a baseball team. Maybe you can get angel money, and by angel I mean "Mom & Dad", but even that's a risky bet.

      You're much better off just working on your startup and bootstrapping off of revenue & other-work money.

  • jcapote 17 years ago

    So, so true.

mgenzel 17 years ago

I heard opposite advice: e.g., spend more time talking about the product and less on the size of the market. And while yes, "Investors don't want you learning on their nickel", I do think they're more forgiving of very early-stage ventures (the right funds, of course).

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