For today's Insights and Opinions section, we have an article from Christopher Grey, the co-founder and CFO of CapLinked, which develops an online platform for managing fundraising for entrepreneurs. Christopher talks about leveraging your network for raising capital.
Many first-time entrepreneurs become discouraged when they realize how challenging it can be to raise capital for their business. Closing a round can often take months, and thats if youre lucky and can convince people to invest in your business. But dont give up. When the going gets tough, break open your Rolodex and get to work.
1) Ask people you know for help. This seems obvious, but many people are too afraid or too polite to do this. If you believe in what youre doing and think youll be successful at it, youre offering people a good opportunity. So you have to nothing to fear or to be embarrassed about when asking people you know for money to invest in your business. In fact, if you don't feel comfortable asking your friends, relatives, former colleagues, neighbors and anyone else you know to invest in your business that may be a sign you don't have what it takes to be an entrepreneur. (More...)
Read more about How to Leverage Your Network for Raising Capital.