If you've been looking for guidance on how to get money for your business, it doesn't take long for you to figure out that most of the advice columns are done by people that don't know the difference between and Angel Investor and a Venture Capitalist!
I've been checking them out and it has become clear to me that most people think the Angel Investor and the Venture Capitalist are one in the same, but they are actually quite different.
This confusion can cause many entrepreneurs to fail to get funded because they are talking to the wrong people about getting the money they need for their business.
I wonder if most columns are done by recently graduated MBA students who are following the textbook case study which is far from what really happens with entrepreneurial businesses.
Every time I've raised capital, I've had people tell me that I wouldn't be able to raise money because I wasn't doing it right, (most of them ended up investing in my business) and even had someone that wouldn't even talk to me put hundreds of thousands of dollars in to a round.
Getting money for start-up companies is an art and requires you to understand the “real” Angel Investors. You need to know what motivates them and how to get them excited about your company.
You need to know that the banker is not likely, as in 99.99% not likely to fund your start-up company.
Most investors want a large share of the action, but if you're able to show them a potential opportunity for a great return, chances are they are going to listen.