lystn

Most founders will never raise a single dime from investors. This has nothing to do with your capabilities as an entrepreneur. It's simply the reality of venture economics and the fact that most businesses don't fit the requirements of a professional investor. The good news is that 95% of business are able to find capital through other means. In this episode we describe how most entrepreneurs raise capital through four main channels - credit card loans, bank loans, money from friends and family, and good old fashion side hustles (aka contract work). Yes, in 2017 alone VC firms invested $61 Billion in capital, but everything is relative. This money was deployed across 5,948 deals - virtually nothing (1%) compared to the 500,000+ businesses that were started that year. To help clarify the reality of fundraising, and to provide some data from those that are bullish on raising venture money, we also dive into the true motivations behind angel and venture investors, and what actually makes an entrepreneur fundable - a track record (previous exits), domain expertise, defensibility, a large market opportunity, and tangible go to market execution. See acast.com/privacy for privacy and opt-out information.