Unless they're independently wealthy, virtually every entrepreneur reaches a point where they need money to take their venture to the next level. "Seed Money" is generally sought from angels, friends of the founders or individual investors, is usually in the 10's of thousands to 100's of thousands and is used for anything from market research to product development. There's definitely a "right" way and a "wrong" way to approach angel investors.
Tips to remember when seeking Seed Money:
Do you have more tips to add to this list or interesting stories to share? We would like to hear from you.
I recently attended a great breakout session at SXSW Interactive in Austin. The Topic was “Early, Cheap and Often: Failure as a Key to Success”. The panel consisted of three entrepreneurs who had all been involved in businesses that failed with their original visions. The entrepreneurs had to close down or pivot into another direction.
It drove home the point that finding that the original vision (a) won’t make money or (b) doesn’t have the market opportunity originally assumed, is not unusual in the entrepreneurial world. Failure is normal. The key is how the entrepreneur reacts to failure. Failure, if handled properly can redirect the entrepreneur to a better opportunity. Here are some key lessons shared by the panel:
Here's a great example of how to fail boldly and publicly with integrity:
Have another example you would like to share?
Mike Breck, SBDC Business Advisor