Since So-Mark provides a marketing service to help you identify investors and raise capital, it’s a good idea to stay on top of the fundamentals of capital raising. This article comes from a successful serial entrepreneur who has been raising capital for a long time. If it turns out you have to go beyond your friends and family to find investment capital then we can help. Let us know how it’s going.
Jim Anthony | Founder So-Mark
Raising capital can be a challenging (and dispiriting) proposition for a young entrepreneur. Most founders start out with friends and family money, but that takes you only so far. For many, the VC community is the next step. Having raised about 30 rounds of capital through six companies in my career, I know first-hand how difficult the process can be. You take your business plan, you march up and down Sand Hill Road in Silicon Valley, and you pitch and pitch and pitch until you find some firm willing to take a chance on you.
My advice is to think like a salesman and treat every rejection as just part of the job. Most of your pitches are not going to result in a term sheet. You are going to be shot down over and over again. Stay optimistic. All you need is one person to believe in you and your business plan. Be persistent. When I was pitching Carbonite, my last company, I made over 40 presentations before getting a term sheet. Today Carbonite is worth $1.4 billion.