The One Thing You Need to Know About Raising Funds

The ONE thing you need to know when raising funds, what nobody tells you is that:

Funding is not a mechanical process, it is a human process:

Funding decisions are as emotional as they are rational.

This has two major implications:

You are more likely to raise funds if you leverage on your passion, not on your skills. By leveraging on your passion you are more inspiring and resilient. You are also more likely to raise funds if you are creating wealth, instead of making money. The subtle difference in intention between creating wealth and making money creates a huge difference in the outcome of your actions. If you are attentive to creating wealth you grow the economy, and you take a piece of the wealth you are creating for yourself. It is then more likely that others’ follow your vision and collaborate with you, as they can also share your big picture. If you are attentive to making money, chances are that you capture a part of the wealth that already exists for your own benefit and it might be more difficult to gain the support of others. Creating wealth is a much more powerful proposition than capturing wealth. You can’t create wealth unless you are passionate about what you are doing.

This is particularly important in the case of Angel investors but it is also relevant in the case of individuals who make a decision to invest (venture capitalists) or lend (bankers) on behalf of others

In the case of those providing funding, a return on investment is an important consideration but not the only one. The individual making the decision to provide funds or resources also considers how likely you are to accomplish what you promise, how you both relate to each other, and, in many cases, how comfortable he or she is with your project. What you promise to accomplish must be meaningful to the individual making the decision to provide that cash or resource in whichever role he or she is playing. The connection of the individual to you and your project plays an important role. For example, the same individual can be a family investor, a venture capitalist, a lender, or a collaborator for different projects

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