This iconic line is right out of the movies. Thanks Cuba Gooding Jr. and Tom Cruise. In the real world, raising money is equally daunting.
My buddy, Speros, provides a brilliant insight as we work on a project together:
“The basic dilemma with private equity investment is that they want to buy the past while the entrepreneur wants to sell the future. There is a balancing act between valuation, terms, and psychology.”
Right on the money. Without, of course, the money — as of now. I wonder how many entrepreneurs are unable to realize their dreams because of the disconnect between what something is worth on a spreadsheet, and what someone is willing to pay for it?
It’s a balancing act. And I hope you find that Angel, who shows you the money.
About Hemant Rustogi