Wired News: Startup Cash Crunch Eases: "Startup Cash Crunch Eases "
Venture capital funding isn't dead. It's actually picking up a little. But for tech startups in dire need of cash, getting an influx of money remains a very difficult task. By Joanna Glasner.
Most interesting points:
In the case of Solutionary, Humphreys said, executives waited until they had a product and at least 100 customers before looking for private investments.
When wooing investors, venture researchers say, it also helps to show that those most familiar with the business are willing to contribute.
"For companies today that are looking for their first round of financing, the very best thing you could bring to financers would be a commitment by your customers to help fund you," said Kirk Walden, director of venture capital research for PricewaterhouseCoopers. "That's a ringing endorsement of the potential of your product."
posted by Jen @ 7:51 AM
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