These days money is rather cheap in the market and this means there are high valuations for promising companies. This eventually will lead to some great companies and than the other at least 80% and more companies who will not make it. One of the reasons why those companies do not make it, is actually the funding. 1st of all the best idea or service does not always win! 2 examples are the execution of VHS versus Betamax or the Querty key board versus Azerty. It is proven that the quality of Betamax was better and typing with Azerty quicker….give it some thought as an entrepreneur who loves to be the best. Also the evolvement of the market has to be taken into account, take Google it was not the 1st search engine on the market, they just made a better product while the market was evolving. They didn´t revolutionised the market they perfected and executed an existing service. The same with Facebook, community platforms already existed a couple years, before they started swinging. The important aspects of this development is that if you are going to get funding, you actually want funding that supports your business on the execution, speed to market and network. Every entrepreneur has strength and weaknesses, which is nothing more than human, but the smart ones know this and start using Funding with a twist. To further explain this take Crowd funding, Crowd funding actually is a marketing platform whereby the community decide to like your platform by investing. So this is free PR, great test marketing for consumer interest, but no support on execution. This is an important statement, because you accept funding from a crowd, which is the same as receiving money from a family member, private investor and or a Venture Capitalist. All these sources of funding have their strengths, but often entrepreneurs are so deep into their dream service they just go for the money and choose the wrong funding. Yes wrong funding! Uber has a lot of funding and if you see the amount wrongly spend, it is WRONG funding. Delivering reports to a board which adds 4 administrative people…WRONG funding. ADDED Value is the name of the game. As a funded company you need all the support you can get on roll-out, network, marketing and sales and speed. Before starting the rat race of funding and big valuation with hockey curves, find out what you are missing with your company. Make a list what you need to make your business a success. Say NO to wrong funding! Tempting but if it doesn´t support your weaknesses and/or adds value, you will spend it and in the end won´t make it!
Good luck by getting to the top and get into the RIGHT funding which suits your needs and make one more beautiful success story for our list.