According to a report by Christian Kameir on Forbes, a lot of investors are often left disappointed with the approach of most founders seeking funding for their project. What are these things that people seeking funding should avoid at all costs if they hope to achieve their goal?
First of all – inadequate valuation (particularly at the early rounds). The second is no understanding of go-to-market strategy (including metrics). And third one – a lack of product development expected for the stage.
It’s important also to focus attention on the aspect of investing involving illicit funds – tax avoidance or the funds the source of which cannot be clearly certified. The frustration investors are often surrounded, because in the business world, sadly, not everyone seeks to play the game according to the rules.
What these founders underestimate, however, is that the long-term success of their venture is going to be exposed. Then the whole community will suffer and bear consequences – founders in the first place, investors in the second. Transparency should always be a priority: openness of the source of funds, combined with a solid value-generating model backed up by rigorous calculus. Otherwise, any project is just a castle made of sand.
by Christopher Fowler
