Raising_Capital___5_Reasons_An_Investor_Won_t__Invest_

							Title:
Raising Capital: 5 Reasons An Investor Won't Invest!


Word Count:
300


Summary:
When it comes to raising capital for your company, it is important to understand the difference between
objective and subjective investors and the reasons investors won't invest. The subjective investor is some
how connected to you. Often referred to as "Friends and Family", but in reality they are investors with a
connection to you directly through a common connection like your friends and family. These investors, or
friends, believe in what you are doing and invest in your ...



Keywords:
angel investors, captial raise, business plan, funding



Article Body:
When it comes to raising capital for your company, it is important to understand the difference between
objective and subjective investors and the reasons investors won't invest. The subjective investor is some
how connected to you. Often referred to as "Friends and Family", but in reality they are investors with a
connection to you directly through a common connection like your friends and family. These investors, or
friends, believe in what you are doing and invest in your business. At some point, a business who seeks
private investors has to move beyond subjective investors to the world of objective investors.


Objective investors examine the overall business model and investment opportunity. Objective investors see
dozens or more offerings each year. How do you think they determine which businesses to invest in? They
look for reasons NOT to invest. By examining your complete business model and investment opportunity
they can determine red flags.


5 Reasons an Investor Will Not Invest:


1. Incomplete financials and/or business plan (market/sales strategy, operational information, barrier to entry
not established)


2. Complex or confusing message within the investor documents regarding business model or investment
opportunity


3. Structure of the offering, perceived cost of the investment relative to a high valuation or unclear exit and
return to the investor
4. Inexperience or incomplete management team, and/or attitude of the management conveying a sense of
entitlement or resistance to advice & counsel


5. Specific industry focus or niche marketplace that limits the potential number of investors


Many of the reasons for no-go investment decisions can be identified and remedied before the investment
process begins. How will your company determine if you business model and investment opportunity is
investor ready? Have a funding application and/or business assessment completed by a legitate company
like Launch Funding Network at http://www.launchfn.com/id70.html.




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