Finding money for early stage companies is hard. This is particularly true if you’re looking for private equity. The fact is that most startups will fail to attract significant amounts of private equity from arm’s length investors.
according to an article published by fundable.com:
…less than 1% of startups are funded by angels or VCs
in fact –
startups are 3 times more likely to rely on crowdfunding than they are to attract arm’s-length investors…
Our mission is to help our portfolio companies navigate them through the local investment scene and to prepare them for investment & growth…….
Raising Money for Startups Shouldn’t be Easy
In 2016 Tech Coast Angels – an active angel investment group out of California – shared its experience of almost 20 years. While they claim to have achieved an internal rate of return of more than 26% throughout the years, more than half of their investments are still active.
Consider that for the 60% of investments that are still listed as”active”, many are likely on life support and will never produce a return. Clearly investing in early stage companies isn’t for the fainthearted.
For this blog I’ve tried to pull together relevant information for entrepreneurs seeking investment. The content is taken from a couple of lifetimes worth of experience – some from my own. Some was taken from my book – Where Angels Fear To Tread – other content came from my experience working with investors and technology companies.