In the early days of Jobs2Careers, I attempted to raise funding, for about 1 month of time. Then I realized that is not a great plan. The hope was so slim, and it looks like I have to spend months of time! With that much time, I probably can generate some revenue already! That’s exactly what I did.
Capital is seeking ways to grow, and the worst thing they are afraid of is “risk”. Even though they call themselves “venture” capital, what they do is the opposite. Don’t blame them – most economic entities are greed driven, reducing risk is the way to increase profit.
The major challenge, as a first-time entrepreneur faces, is to answer the question: “Who are you?” No matter how hopeful your idea is, this question will catch you sometime in the process. Well, by asking that question, they are already demanding your certain level of success (or social credential.) I did not have a good answer to this question, since I chose to be honest.
The alternative challenge question, is “show me some traction”. That again, is their demand to reduce risk. But honestly, if you do have traction, you are already very successful, implying that you already passed the stage when you need help the most.
The conclusion: do not dream of early investment from strangers: when you need help, everybody will turn their head away. From time to time, you do hear of some angel investment, though. Believe me, those are not driven by business ideas, but rather by family relationships, or long-time friendships.
Here is the action plan for you: If you can raise easy money from parents, relatives, close-friends, absolutely take it. Do not waste time pitching to the so-called “angel investors” until you already overcome the biggest pain in jump-starting.