Of all the consulting inquiries I get at Red Rocket, fundraising is by far the biggest need of these startups. And the problem is, not all startups are venture-backable, for a variety of reasons, which we will discuss in this post.
It's imperative to ask: Is my industry appealing to venture investors? Is my business appealing to venture investors? And, if so, how can I attract capital for my business?
First of all, angel investors and venture-capital firms invest in a wide variety of industries (e.g., technology, digital media, CPG, retail, real estate, health care, life sciences, manufacturing). So, before reaching out to any investors, make sure your industry is clearly in their sweet spot and skill set. That said, there are certain industries that have a LOT more start-up activity than others. As a rule, businesses that heavily invest in real estate, inventory or other capital risk are materially less desirable than simple technology businesses. So, bad news if you are a start-up restaurant, retailer, REIT or manufacturing business. Good news if you are a dot.com, software or technology business.
To read the full, original article click on this link: How to raise capital for your startup - Blogs On Entrepreneurs - Crain's Chicago Business
