8 Red Flags When Pitching Investors
Raising venture capital is no easy task; many variables need to come into play and align for a round of funding to happen.
We’ve covered extensively what a pitch deck should have and what your financials should answer, but today we are going talk about the deal-breakers.
The stuff that (ourselves included) didn’t know was working against us until it was too late. Let’s do it.
1- The incorrect founding team
I have this theory that the founders should have the capacity to generate the first $100K of revenue for the company, without needing any external talent. If there’s a skill you are missing to get your company to revenue, then that person should be your co-founder, not your employee.
Founders should have the capacity to generate the first $100K of revenue for the company, without needing any external talent.
Imagine a biotech company started by two founders with a business background. They are raising money to hire a scientist to join them. It doesn’t make sense, does it?