The major reasons for fail to get funding

The major reasons for fail to get funding

All of the below contribute to getting a negative impression, due to the lack of valid calculation and proper business planning. Each entrepreneur has to sit down and think seriously about the business project, if he or she wants to have serious investors on board.

They are:

  • Inability to prepare a proper business case
  • poor legal setup
  • insufficient community of backers
  • inadequate valuation

Developing a successful business model takes time, and never comes at a low price. The breach comes in when the founder fails to evaluate their own forces realistically, gives too much reliance to a team that does not possess a proper skill-set, does not apply a rigorous approach in market evaluation and under-researches consumer needs. Not to mention the legality of the aspect – there has to be a separate team in control of that.


by Christopher Fowler