Raising Capital: 5 Reasons An Investor Won’t Invest!
When it comes to raising capital for your company, it is important to understand the difference between objective and subjective investors and the reasons investors won’t invest. The subjective investor is some how connected to you. Often referred to as “Friends and Family”, but in reality they are investors with a connection to you directly through a common connection like your friends and family. These investors, or friends, believe in what you are doing and invest in your business. At some point, a business who seeks private investors has to move beyond subjective investors to the world of objective investors.
Objective investors examine the overall business model and investment opportunity. Objective investors see dozens or more offerings each year. How do you think they determine which businesses to invest in? They look for reasons NOT to invest. By examining your complete business model and investment opportunity they can determine red flags.
5 Reasons an Investor Will Not Invest:
1. Incomplete financials and/or business plan (market/sales strategy, operational...