writes copy 09 Nov 2017

6 Successful Dealmakers Provide Top Tips on Raising Capital

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Bootstrapping will only take your startup so far. Many businesses underestimate how much money they really need to keep going and growing, and they run out of runway. When raising capital, these investor-entrepreneurs and members of  The Oracles  share their best secrets, tips and strategies.

1. Soul-search

For me, it's all about enthusiasm. You need to show why you need to spend the rest of your life achieving this mission. The mission itself has to be  large enough  for a venture investment and  crazy enough  to make a significant impact. The technology must also be unique.

Before you ask anyone for money, make sure this is what you want to do'Š'”'Ševen if you never get the money. I often ask entrepreneurs this question: 'œWhy? Why are you doing this?' If the answer doesn't burst out of their chest, I'm out. If it does, I lean in. Every entrepreneur should ask themselves this question. Do some real soul-searching before embarking on a life-changing and potentially world-changing venture.

'”Tim Draper, legendary VC, founder of  Draper Associates  and  DFJ

2. Test your  idea

I've always used more of my own money and limited outside investors.

Never underestimate trying to raise funds from your existing customers. The modern world of Kickstarter, Indiegogo and the internet enable you to pre-sell things before they're produced. This has a two-fold benefit. One, it's the same as raising capital, but you don't have to give away equity or decision-making control. And two, it validates whether the idea is good or not'Š'”'Šand ensures you're not raising a bunch of money for a business that's doomed to fail.

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