Read this for a great insight into how it feels to raise money from an entrepreneur’s perspective. Sokratis from TrustedPlaces gives a blow by blow account of what happened and how he felt during the 83 days it took from first meeting Hugo Burge to receiving their $1m investment from Hugo’s HOWZAT media.
Sokratis draws three lessons:
1) Don’t underestimate the effort you’ll have to put behind due diligence. Prepare for it.
2) Find people you trust (like a fast-talking lawyer) to usher you through the process. This is critical.
3) Help yourself by reading up on legal and corporate terminology before you even begin to try and raise funds.
Another important thing is to keep momentum in your business. In several places Sokratis notes how the core business at TrustedPlaces kept moving forward. I can’t make this point strongly enough – particularly for very early stage businesses. Successful VC is all about backing businesses with momentum, and if that falters confidence will plummet.
Finally – 83 days from first meeting to cash in the bank is pretty fast, at least for a VC – so well done Hugo. My last investment in Tribold was done about that quickly, but usually it takes longer, and that is what you should plan for.
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