Startup Founders Afraid of Raising Capital

Mainly because they do not know how money works.

Let’s face it.

For many first-time founders, raising money is a big challenge.

Why?

Because they have not got a proper training in money management.

They are coming from mid-level or even low-level income earners and during their parent’s and even their own lifetime, they had no access to large sums of money.

Many businesses go down, simply because the leadership team does not have the proper financial knowledge and they are money wasters.

So, when they launch a startup and want to think about fund raising, there is a little voice in their heads that tells them:

Hey mate;

Do not go to friends and family.

You will never be able to convince a technical co-founder and it is impossible to build the product.

Do not go to an angel investor.

Who do you think you are to reach out to a rich person and ask for their money when you know you will lose it all.

Do not go to a VC.

Because even before getting to that level, you are out of the business.

Do not think about scale.

You do not have management skills and will definitely screw things and take the business down with you, many people lose their job and you are the sole responsible.

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First of all, you must shut down these menacing voices in your head.

Second of all, you need a coach.

I am not talking about those coaches that give you coaching lessons about coaching.

Talk to a professional psychologist or another founder who are few steps ahead of you.

Third, there are lots of people that are happy to help you along the way.

You are not alone.

The fact is there are lots of VC and angel scouts out there that can make warm intros to investors and charge you when you close the round.

Plus, I strongly recommend you take some money management courses out there or at least educate yourself on P&L management, financial literacy and budgeting.

I know this looks boring, but it is necessary.

So, do not waste more time and get finance savvy.

Conclusion

There have never been as many options for companies seeking to raise debt or equity capital.

On the other side, there are so many startups looking to raise capital and it becomes very hard to get investors’ attention.

At the time of writing, California-based startups could raise close to $90B in the capital only in 2022. But the fact that if you are a first-time founder and struggling to navigate the process — Capitaly can prepare you in the investors’ eyes.

Talk to Capitaly today about the essential role that our platform plays in enabling startups to take this leap.