REASONS FOR REJECTION BY VENTURE CAPITALISTS

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Failed to gather funding by venture capitalists? Poor you. The thought that must be all across your mind right now is, why did they reject my proposal. But don’t be frustrated. It is quite normal. When looking for venture capital funding in Texas, you have to be quite careful as even the slightest mistake can result in a big failure.

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REASONS FOR REJECTION BY VENTURE  CAPITALISTS  Failed to gather funding by venture capitalists Poor you. The thought that must be all across  your mind right now is why did they reject my proposal. But don’t be frustrated. It is quite  normal. When looking for ​venture capital funding in Texas​​ you have to be quite careful as even  the slightest mistake can result in a big failure.    Listed below are a few common reasons for getting rejected by venture capital investors.    ● A deal too small  A small deal results in less return income. So many venture capitalists do not prefer small  businesses. Sometimes they won’t even talk to you if you are seeking a small capital. The  minimum amount must be 1 million or 10 million.    ● Brand new company  Venture capitalists usually refrain from investing in baby stage businesses. You can go for them  after the business has been in the market from some time and is running well. It is better to go  for ​Angel networks Austin Texas​ if you are looking for business startup funding.

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● No existing revenue  Lack of revenue is quite a practical reason for rejecting any sort of investment in the business.  Think for yourself why would somebody invest in your business if there is very less or no  revenue generation. If your business has made some profit show it to the investors. Only then  will they be interested.    ● Too much technicality  Always remember to keep it short and simple. Your great idea is of no use if you express it in a  way that is difficult to understand. If you listen to ​venture capital funds discussions​ you must  be aware that venture capitalists like creative and unique ideas presented in a simple manner so  that they can understand what they will be investing in. If you get too technical you will lose the  funding.    ● Desperately in need of money  If you are desperate for money you will most likely be rejected. Venture capitalists prefer to  invest in businesses that are already stable and need capital only to grow more. So  demonstrate to them that you do not need money. It is just for further expansion.    So now that you know the reasons for getting rejected try to improve accordingly. If  you are looking for startup funding keep a track of ​angel investor discussion​ to learn  various tips on securing the capital.  Resource: https://investorconnect.blogspot.com/2019/01/reasons-for-rejection-by-venture.html

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