About Growing Entrepreneurial Businesses

Dynamic content on all matters to do with growing businesses from Keith Willey

Delusions in the Equity Gap

I just finished reviewing a pile of business summaries from people seeking early stage/startup funding. It reminds me about this ‘Equity Gap’ thing – the main reason why people cannot get funded is that they don’t deserve it. Period.

It starts with the people who have the germ of an idea and nothing else. I mean nothing else… maybe just a bit of googling around it. Sometimes less. In fact I have even googled around ideas sent to me and discovered plenty competitors that the so-called entrepreneur didn’t even know about never mind understand. Someone at 3i told me that new recruits used to have to take it in turns to receive the cold calls made to 3i – there were so many looney tunes that it was demoralising to do it every day.

These ones made it into harcopy for review.

These ones made it into harcopy for review.

Then when people have worked up an idea so that it is looking more like a real opportunity they forget that it is in fact new to everybody else and so fail to drive home the killer points about why it will succeed. Too often the summary is a sort of contents page of the business plan that omits the real hooks – the special things about the team, the market, customers, timing.

Anyone experienced in investing will tell you how jaded they get seeing people asking for money for ideas they haven’t actually spent time developing into real opportunities or seeing pitches that are dull and don’t sell effectively.

So now you want my ten points on how to get over this…. well there are hundreds of sites where you can get those tips. Apparently some people cannot even be bothered to read them. Rant over.

Filed under: Blogroll, , , , ,

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

My Tweets

Error: Twitter did not respond. Please wait a few minutes and refresh this page.

RSS Entrepreneur news from Growth Business

  • An error has occurred; the feed is probably down. Try again later.

A Collection of London Business School Entrepreneurs - roll over for preview

Entrepreneurship and academia

Sites for Entrepreneurs

%d bloggers like this: