Getting Investors For Your Start-Up

At its heart, a startup investment is an investment in the entrepreneur. And the earlier stage the investment, the more so this is true.So how does an entrepreneur, just starting out, with little or no track record gain the credibility necessary to attract capital ? They gain credibility in two ways — they borrow it and they demonstrate it.

Borrowed credibility runs on the same principle as guilt by association. If entrepreneurs surround themselves with people who have credibility, they gain credibility themselves. In the business world, reputations are paramount. As a result, when well-respected individuals vouch for an up-and-comer, it is meaningful. There are lots of ways someone can vouch for you as an entrepreneur.(1) They can provide services to your company (awesome lawyers, accountants, recruiters, etc. are in great demand — if they work with your company it means they were willing to bet on your success). They can lend their name to the company as an official advisor (ideally you will be able to clearly explain how they are working with your company other than merely lending you their name).(2) They can invest in the company (if industry experts or startup/product/marketing gurus invest in your company, it is a huge vote of confidence in what you are doing). Read more of this post