In fundraising, the ultimate responsibility lies with the CEO.

The CEO must know their numbers, how their operations work, and exactly how the product performs. 

From time to time, there will be problems in the business.

While it’s not the fault of the CEO, it is their responsibility.

Investors want to know that the CEO is taking responsibility for the problem.

CEOs should avoid blaming others in the startup. 

When challenged by an investor for an issue in the company, it’s best that the CEO “owns” the problem and discusses how it will be resolved.

Never abdicate responsibility, but always have a plan.

Investors will look to see how CEOs fix problems during the diligence phase. 

For key issues, it’s best that the CEO brings up the issue and shows the progress made on the topic.

Investors avoid those who avoid the problems, knowing that eventually the problems will drag down the startup.

Take responsibility for any and all problems and own them.

 

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.