RECOMMENDED READING. Christina Bechhold, co-founder of Empire Angels in New York, offers some fundraising advice from the angel investors perspective in a recent Wall Street Journal article. She recommends entrepreneurs be forthcoming and transparent when they raise money noting that investors talk with one another and don't like surprises or to hear varying stories from other investors about a company's pitch.
"Fundraising is a slog. I advise first-time founders to double the timeline they budget to raise, because it will always take longer than anticipated. Seasonality—summer vacations and year-end holidays—will undoubtedly slow down response times. Product and market are evolving simultaneously, so numbers and discussions change in real time.
If you shared projections for April and it is now May, proactively send the April actuals to the investors with whom you’re actively engaged. Share an update on the partnership discussions you hoped to conclude in March but which are pushing into late spring."
Check out Christina's Three Reasons Entrepreneurs Need to Be Transparent With Potential Investors for more of her advice.
Empire Angels, a member-led, angel group of young professionals investing in early stage technology ventures. The image is courtesy of Wikipedia.org.
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