One of the most challenging experience of all entrepreneurs is raising capital to fund their business idea. However, many entrepreneurs don’t know when to quit and realize that their business idea isn’t fundable. Savvy investors are not interested in experiments, to throw their money in the craps table, they want to invest in a business they know it will be profitable. Unfortunately, many “entrepreneurs” are interested in raising money to pay their bills and eat and that is not going to cut it. If you are doing this right now, you are wasting your time thinking that you will be able to raise money.

Here are three reasons your business is not getting funded:


  1. You. I know, you are the “almighty entrepreneur”. How can it be you the problem? Simple, here are three reasons:
    1. You are inexperienced. Can you really deliver the results you promise, when you have no experience in the field?
    2. You started your business for the wrong reasons. Do you know the why you started your business?
    3. You are a poor communicator. You are not able to clearly communicate the vision of your business and how it will deliver the expected results.
  2. Your “business”. Your business/start-up is not really a business. It may be an overgrown/expensive hobby. Some individuals will study the market, find a need, and start a business to meet the need. Others find a product they enjoy, buy a lot at a discount and think that they have a business. The first has a business, the second has an expensive hobby. Here are some signs that you may not have a fundable business:
    1. Your business does not generate revenues.
    2. You don’t have a qualified team to deliver the expected results.
    3. If you have a management team, they are doing it when they have time (part-time).
  3. Your product. You are now thinking; how can it be my product? It is the best! While your product might good, it may not be good enough. Investors are not interested in experiments. Here are couple of things to consider about your product:
    1. Is your product a feature of another product? While some entrepreneurs see this a blessing to fly under the wings of success of another product dreaming that the larger company will buy them out. This is a possibility and it does happen, the reality is that big companies are not likely to acquire features of their products unless those features have massively and publicly failed.
    2. Does it meet consumer needs?
    3. Does it fix an existing problem?
    4. Does it target the correct market?