Raising Money is a Black Swan

 Searching for black swans can be a big waste of time. I’ve seen an entrepreneur sleep on my couch for months while he tried to raise money. It seemed like he had no hope—until he suddenly raised money from Big Firm X. Many entrepreneurs implicitly understand this. They know that raising money is rare, unpredictable, and important to their business. So they spend months and months searching for a black swan. But perpetual fund-raising is a bad way to raise money. Investors like to invest in working businesses—which means you need to work on the business—not spend the next 6 months raising money.

 

(Full Post: http://venturehacks.com/articles/black-swan


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Babak Nivi

Babak Nivi is a co-founder of AngelList andVenture Hacks. Previously, he was an entrepreneur-in-residence at Bessemer Venture Partners and Atlas Venture. He has worked on startups including Songbird, Grockit, and Kovio. He went to school at MIT where received 2 patents and published in Science.

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Filed Under:
Collection: Funding
Category: Approaching & Attracting Investors