Article published by : Article Alley on Tuesday, December 27, 2011

Category : Entrepreneurs

How Entrepreneurs Use Mentors to Raise Capital From Investors


As an entrepreneur, are you having problem sourcing funds? Do you pitch your idea to investor after investor, only to revert back to square one in gaining capital? What do you do next?

For many entrepreneurs, the most difficult part of the entrepreneurial process is sourcing funds. A venture capital fund or an angel investor group might only grant 1 in 1000 entrepreneurs the right to pitch, and only 1 in 10 of those deals might get funded. So how does an entrepreneur become that 1 in 1000?

It is about perception and the network!

Many entrepreneurs still do not understand that if they go straight for the money their first time out, they have a 95% chance of burning the entire investment network. The perception they create with those first impressions can travel much faster than the entrepreneurs can. One investor will tell 10 others that they passed on your deal and then, even after you’ve cleaned up your presentation, you will still have a hard time getting future investors to take a serious look at your deal.

Don’t make the fatal mistake of going this process alone.

There are many, many people and organizations that want to see you succeed. But first, you have to be humble enough to realize that you don’t know it all. Although every entrepreneur believes their deal has what it takes to get funded, every deal can be improved to improve its investment success. Ask around to find a great Mentorship program.

A professional mentorship program will help one cultivate positive perceptions, thereby creating positive connections between entrepreneurs and seasoned investors. By gaining access to a wealth of guidance, advice, and connections within the venture community, entrepreneurs can drastically improve their chances of getting funded.

Innovative venture capital mentorship programs, built on award-winning research and time-tested ideas, can help you become that 1 in 1000. Such programs include venture professionals and investors as your mentors; they give a full review and critiques of your executive summary and pitch, access to innovative programs and ideas, and the ability to utilize resources like venture analytic tools.

Within the mentoring process, value is added to the entrepreneur. This value-add is done through a process of business plan critiques and also through a series of q&a sessions with seasoned venture professionals and investors. Through a third party observer, objective comments and critiques from mentors provide feedback to how entrepreneurs appear to investors. Through such venture capital mentorship programs, venture professionals provide unbiased feedback to help entrepreneurs achieve their true potential.

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