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Many entrepreneurs don’t understand the cruel reality of fundraising. Just because you want to raise venture capital doesn’t mean you will raise venture capital.
Consider this ratio: 100:1. That’s one investment for every one hundred face to face meetings a typical VC will take. Raising money is unbelievably hard.
And fundraising is all-encompassing. It’s essentially a second job. No, make that a second first job.
Fundraising is fickle too. Imagine you’re climbing a mountain, and you’re just about to get to the peak. You pull yourself up to the peak and someone kicks you off the peak and you fall all the way to the bottom. Now you have to start all over again. That’s fundraising.
So, don’t raise venture funding if you are faint of heart. That’s the first reason not to raise venture funding.
But there are many more reasons not to raise venture funding including…
A. You don’t need to raise venture funding.
I was talking the other day with a CEO about how to keep growing his company. His company was at $5M ARR, insanely profitable, and growing at 100% per year on year. Yet he was…
