Basic Mistakes in Fundraising

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

In the startup world, there are mistakes founders make in their fundraisers.

Avoid these basic mistakes in fundraising

Raising less than $250K.

In the venture world, $250K is the lowest amount of funding to raise.

Below that level, it’s not possible to do something meaningful with the startup.

Raising funds from first-time investors.

Those who have never invested in startups will require a great deal of education.

The investor will need help on terms sheets, standard operating procedures, and more, taking the founder’s time away from other investors.

Not setting a minimum investment amount.

In the angel world, $25K is a common floor for an investment.

Too many investors with $5K and $10K checks can fill up the cap table.

Not raising sufficient funding.

The fundraising target should provide enough runway to take the company to the next level.

Not performing diligence on your prospective investors.

The investors will perform diligence on the startup, so the startup should do so with investors.

Signing up the wrong investor can create headaches for the founder later.

Avoid these mistakes in your fundraising.

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.

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