In our prior post, we introduced our Ten Points When Seeking Venture Capital and covered the first, Be realistic.

Point 2.

Be persistent – very persistent. The venture capital business model assumes founders will face many obstacles as their businesses grow. This is one reason why the valuations they place on early-stage companies are so low compared to what the founders may think they are worth.

Experienced venture capitalists also know that they will be “in the trenches” with the management team, and will probably be asked for more money at some point, often under circumstances where the company’s continued existence is at stake. If they sense, for any reason, that the founder or the management team does not believe enough in their concept or their abilities have the courage of their convictions, they may walk away even if they like the business opportunity, or they may condition their investment on installation of the management team of their choosing.