The Irony of Raising Money For a Startup

I'm going to guess that this has never happened before. I recently left my day job to spend more time on my own startup, and to spend more time raising money. About the same time, another local web startup contacted me and offered me a job. It was a pretty good offer.

They have not yet raised money either, and I'm not required to make a decision until they do, but here's the funny part… they said they need my bio on the executive team in order to get funding. The irony here is that my bio isn't helping me get funding, even though we are in a similar space.

Raising money is really an odd process to go through, because everyone who has been through it tells you "this is the way it really is…" yet all of them finish that sentence differently. People tell you it's about the team, not the idea. Then someone else tells you it's about the idea first and the team second. People tell you to just make up your numbers because everyone knows you can't predict the future anyway if you are doing something really new. Other people tell you that your numbers really do matter. I think it's really like dating – finding someone who wants what you want is much better than trying to change someone who you like, but wants different things.

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My advice to would-be entrepreneurs remains the same… move to the Valley.

  • Rob,

    Let’s be honest. It’s all about raising the hairs on the back of the VC’s neck. Who knows in advance what will do it? But ultimately, that’s the differentiator. Your resume, combined with everything else, might tip the balance for an investor in the other startup. Your Daily Idea cameo might. Who knows in advance? It’s like dating. Keep at it and refine your target audience and you’ll get there.