If You’re Raising Startup Money, Unlearn These Common Investor Myths

No, they don’t “throw around” money on big risks. For the most part, they’re spreadsheet-scouring risk mitigation machines

Investors are like startups but with money instead of product

One thing I figured out a long time ago is that there isn’t much of a difference between what an investor is trying to accomplish and what I’m trying to accomplish.

Myth #1: Investors have a bunch of money to throw around

At some point, you or someone you know (or someone you’ve heard of) may have run into an investor with a ton of money and no expectations on the return. These are Bigfoot, Loch Ness Monster, Area 51 investors, in that they might exist, but I’ve never seen them with my own eyes.

Myth #2: Investors like to take big risks.

They really don’t.

Myth #3: They can be swayed by the fact that the only thing standing in the way of your company becoming a billion-dollar company is their money

It’s the opposite.

Myth #4: They’ll be sorry if they pass on you

They will not.

Myth #5: They expect some companies to fail, so why not yours?

I’m surprised at how often this myth comes up, and it comes up in a very sidestep/roundabout way, usually related to the Bigfoot investor or hold-my-beer-risk-taker theory.

Myth #6: If you can catch the right investor on the right day, you’re in

Investors all have LPs and boards and advisors and relationships with people who double and triple check their gut instincts and their math.

I’m a multi-exit, multi-failure entrepreneur. Sold ExitEvent. Building TeachingStartup.com & GetSpiffy. Former Automated Insights. More info at joeprocopio.com

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