An odd milestone to achieve is the time when you don’t need the money is the best time to look for it: This may seem strange on a spectrum of comparative levels, but the best time to raise money is when you don’t need it. You can conduct business now without it, or if you have alternatives Many entrepreneurs just don’t understand the value of finding their way without VC money or they think they need the money more than they actually do. Some believe they need it sooner than they do. And some think all of these things.
The result is they spend a lot of time too early in their businesses lifecycle focused on serving VCs instead of serving their customers. Raising money is a negotiation. You need options when you are sitting at the bargaining table and you need a well defined path of producing business without capital, making this a legitimate path.
Only seek out capital investment when you have a product to present: There are exceptions to every rule, but unless you have built a successful business before, or your business requires millions and millions of dollars to build up the product line don’t talk to VCs before you have a working product or prototype. The consequence is that VCs have no incentive to fund ideas. They can wait till later in the process of building a business. And it’s important that they do because they want to be sure of their decision to invest in YOU. The difference between VCs and entrepreneurs is customers: entrepreneurs have them, VCs do not Knowledge of your customer is what is going to make you