First Time Entrepreneur? No Funding for You! : Under30CEO First Time Entrepreneur? No Funding for You! : Under30CEO
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First Time Entrepreneur? No Funding for You!

| August 30, 2010 | 10 Comments
first time entrepreneur

Photo: .A.A. via Flickr

Many young entrepreneurs don’t realize how hard the funding process is. You hear all day about these companies getting tons of money and it seems like VC money is flying around everywhere. However you don’t hear about the 1000s of ideas that are shot down or never got that funding they were after.

Business Insider published a story about the fact that many first time entrepreneurs never get funding.

“I thought getting funded would be as simple as pitching my idea to a smart VC and getting a check based on the magnitude of the idea.”  The author then says “Two different first time entrepreneurs in their early twenties both made some version of this comment to me in the last month.”

As the author says the reality is that if you have not previously built a business your odds of being funded are very low.  The truth is many investors hear reasonable ideas all the time for businesses but a lot of the decision comes down to the person behind the idea. What is their reputation and history? The right person can turn a bad idea into a market leader and the wrong person can turn an amazing idea into a failure.

So how do you get past these obstacles? The article offers a few pieces of advice:

  • Turn to your network. Who do you already know who believes in you that can provide any amount of money?
  • Look to investors in your businesses industry. Especially if they want to be an advisor or mentor on the project.
  • Keep building you businesses without funding. The more you show the idea is valid the better chance you will have over time of getting the funding.

Read the full article here


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Category: Funding

  • http://under30ceo.com MattWilsontv

    Most businesses are started with friends and family round first, but even those people might think you are crazy for trying to start a business with little to no experience and nothing but a hope and a dream. If you are really serious about it, show your investors you are willing to do ANYTHING to achieve these goals. Under30CEO was built while I was digging ditches to pay my rent and that experience is something that no amount of funding can ever replace.

  • Zunnurain

    These are great ideas for new entrepreneurs. They should be aware of the funding situation earlier than later.
    Thanks

  • http://twitter.com/pdgurney Paul Gurney

    Helpful article, Matt and Jared… thanks for all your efforts here on under30ceo!

  • http://twitter.com/pdgurney Paul Gurney

    Helpful article, Matt and Jared… thanks for all your efforts here on under30ceo!

  • Wattsresume

    Social networking such a huge things in this day and age. You can hundreds if not thousands of eyes on you within a few minutes. I respect the medium of social media/networking. http://www.wattsresume.com

  • Usama

    Bootstrapping can sometimes payoff if you do it right. Keep your heart and ambitions in one place and all is set.

  • Norlan1123

    hey great article and advices there, ive been looking up on wiki a lot about how facebook and twitter received their funding and this article gave me a glimpse of light of how the process works, thanks for your insight

  • http://Under30CEO.com Jared O’Toole

    Glad it could help!

  • http://twitter.com/ExecutivePlan Adam Hoeksema

    According to the Angel Capital Education Foundation only 1 to 4% of angel investment applicants successfully raise capital.

    I am 22, definitely under 30, and I started a company, ExecutivePlan, to help entrepreneurs write more powerful, memorable, and effective business plan executive summaries in order to increase their opportunity to raise capital.

    I was looking for guidance on How to Write an Executive Summary and all I could find – a couple of short articles… So I launched http://www.theexecutiveplan.com where I offer free executive summary templates, examples, and even an 11 Page Guide on How to Write an Executive Summary.

    I don’t claim that a great executive summary is some magic capital raising tool, but I have reviewed dozens of executive summaries for my clients and they just plain suck. Don’t ruin your chance at funding before you even meet the potential investor. Make sure you have a great executive summary!

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