Welcome to the world of entrepreneurs, struggling to raise money. The premise, for the most part, is simple. Carefully demonstrate low risk, high probability of success, and you are fundable.
Sometimes it’s a little bit like buying life insurance. Prove that you will live forever, and voila — the coverage is yours.
Good investors take calculated risk, and that’s when the real payoffs come to fruition. Raising money, spending money, and making money are central to the free enterprise system. And it is one heck of a game.
Given that the failure rate for startups is right at 90 percent (Forbes), I can understand the aversion to risk. For new startups, waiting for funding can be a nail biting experience; especially if all your eggs are in one basket.
The irony is that it is tough to succeed, till you stare failure in the face every single day. And you have to be all in — in every sense of the word.
About Hemant Rustogi