Raising Money 101

If you're smart, you'll keep these rules of the road in mind.
1 min read
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When raising venture capital, make sure not to lose sight of the following basics:

  • Know what you're looking for--lead investors are key.
  • Keep the lines of communication open--form an advisory board.
  • Obtain personal links early--secure a good attorney (a link to possible investors) from the start.
  • Be prepared for any issues investors may raise--have a business plan and an executive summary at hand.
  • Offer your investors instant results--line up your references.
  • Build a solid relationship with your investors--get warm-body introductions.

Excerpted from Entrepreneur magazine, July 2001

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