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Startup Capital

It can be extremely difficult to find startup capital, and there are some really good reasons why startup capital can be so elusive.

For one, there are far more ideas (good and bad) than there are investors who are willing to put forth startup capital. If you think finding funding is hard, you should see how hard it is for an investor to find a decent deal in the sea of ideas that come their way. Just talk to any investor, and they can testify that they've heard it all--from the next great widget to a revolutionary new way to slice bread! You may have good intentions, but that doesn't mean that you have a good business idea or that you'll be able to pull it off even if your idea does have some merit. Look at eBay for example. If you had come up with the exact same idea ten years ago, could you have turned it into the auction machine that it is today? It's doubtful at best. Great ideas are worthless if you can't execute on them.

Finding Capital is Like Dating

It's hard because there aren't many matches - there is usually just one match in the end - it's like getting married -- you might have to do a lot of dating before you find the right person and, even then, you'll need be mature enough to make the relationship work. In this same sense, you and your business must be stable and mature enough to be positioned for a potential investment.

Bringing on an investor is much like a marriage. The investor will bring many things to the table (not just capital), but will also have demands that need to be fulfilled in return. Is your management team able to handle the demands that come with the addition of an investor? If not, it's an automatic deal killer.

It Takes Time, No Matter What!

Think of how long it takes to find a spouse--it can take years and even decades in some cases. Finding an investor can often be the same way. You can accelerate the process by using tools and networks, but ultimately it may just be a matter of serendipity. Focus on becoming the "right" company by fine tuning your business model and harnessing actual customers. Do this, and you'll greatly improve your odds. Startups that are able to prove that their business model works, because they have paying customers, are much more likely to land an investment.

Summary
Finding capital for your startup business can be a long and, at times, difficult process. It's much like any relationship, it will take time and a bit of luck before you ultimately find the right match. Don't expect to find love at first sight.