Deal Breakers – What Causes You To Lose The Investor?
Jason Shuman, a VC at Corigin Ventures has put together a great list of the kind of offers, attributes, financial flaws and other triggers that cause a founder to not get the funding he seeks. He calls them the Red Flag list of Deal Breakers.
Some of them:
“Companies where the product isn’t already awesome”
Neutral or negative customer calls — Investors are going to speak to customers during diligence.
When an entrepreneur says “we have no competition”
Unrealistic valuation expectations
Sky high burn rates
When all of your business comes from one customer
Generating demand primarily through direct paid marketing
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