4 Ways to Generate Investor Interest, Even When Funds Are Scarce – Entrepreneur

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Raising capital has always been a delicate situation for innovative entrepreneurs, but having the sand of a global pandemic thrown into the gears really brought things to a halt. The flow of money immediately froze up, and startup leaders — particularly aspiring businesswomen of color — felt (and still feel) the chill deeply.

Related: Out of $85 Billion in VC Funding Last Year, Only 2.2 Percent Went to Female Founders. And Every Year, Women of Color Get Less Than 1 Percent of Total Funding

Granted, funding can be a blessing and a curse. I’ve done deals and then desperately wished I could give the money back. The investor wanted to make a quick buck and constantly pushed us to make decisions that were bad for the in the long term. Pandemic or not, it’s vital that startups avoid taking the wrong money or partnering with the wrong people as it can cause far more harm than good.

Despite best intentions

Certain challenges tend to arise repeatedly when entrepreneurs and startup leaders begin raising capital. Common snags include timing, relationship quality and vigilance.

Timing is likely the biggest challenge for raising capital in a startup. Many external macroeconomic factors dictate access to capital. During a recession (or aversion to certain industries), investments can be hard to come by,

Author: Pitching Startup on Review