The ‘Myth of More Investors’

Many entrepreneurs working through an institutional capital raise unwittingly operate under the deadly ‘Myth of More Investors.’

Without question, this myth is the single largest cause of frustration, wasted time, and wasted money in any growth-stage capital raise.

The myth is the mindset that the capital raise process can be simply reduced to a numbers game. The only thing a Founder needs to focus on is meeting an endless number of investors.

Quantity of investors over quality. Meet more investors, and eventually capital will follow. The more investors the better.

However, this reasoning is flawed. It is a mindset that most often leads to pain.

The reason that this myth is a trap, is because it overly simplifies a very complex process to one unit of input — the number of investors that the Founder meets. Success or failure is simply a factor of this number.

However, the truth is rarely that simple.

It is most often the case that the business is not well aligned to the needs of the investor, there are weaknesses in the business that must be corrected, and the Founder is often targeting inappropriate capital providers.

I challenge you to learn a better way. BennuPartners.com