The process of raising funding brings the startup founder several intangible benefits.

Here is a short list:

Fundraising forces you to think through your business strategy and articulate it clearly.

Investors will challenge your strategy requiring the founder to defend it.

The pitch elicits feedback from the investors which often improves the plan.

While entrepreneurs look at the opportunity in the deal, the investor looks at the risk.

Investors highlight the risks and the challenges to overcome.

This feedback sharpens the pitch.

Investors also provide feedback on the market, team, product, and other aspects that help refine the strategy.

The pitch presentation expands the circle of those who know the business and can potentially help in the future.

Consider the additional benefits that come from raising funding, which is a better business plan and a broader network of contacts.

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.

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Thank you for joining your host Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing.

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Disclaimer:
Hall T Martin is the director of Investor Connect, which is a 501(c)(3) nonprofit dedicated to the education of investors for early-stage funding. All opinions expressed by Hall and podcast guests are solely their own opinions and do not reflect the opinion of Investor Connect. This podcast is for informational purposes only and should not be relied upon for the basis of investment decisions.