During this Webinar Wednesday session, we talked to Kevin Welch, an experienced and successful entrepreneur who has grown multiple technology companies from inception to multi-billion-dollar entities.
Kevin shared his background in becoming an entrepreneur, what he has learned about venture capitalist funding, and how VC’s evaluate startups to invest in.
As you may know, 80% of startups end up failing within the first 5-10 years, so Kevin emphasized the importance of having viable, innovative ideas that can yield long term results and become sustainable businesses.
Funding is one of the main worries for entrepreneurs, and Kevin had some thoughts to share:
- Avoid the 3 F’s: don’t seek funding from friends, family, or fools.
- Look for funding opportunities through angel investors, accelerators, crowdfunding, and crowdlending
- Seek out experienced investors who usually have a track record on investing in your kind of business.
- Be prepared with a detailed financial plan.
- Have a sensitivity analyses where you evaluate what kind of uncertain events could happen in the future and how your business can remain afloat during uncertain times.
Venture capital is usually one of the many funding stages you can encounter in your entrepreneurial journey.
Be prepared for the learning experience and opportunities that not only investors but also employees and customers bring to the table. Remember, investors back people, not ideas.