ABSTRACT
Why fundraising efforts fail ..................................................................................................... 204 Reality-checking your fundraising strategy ........................................................................... 206 Seed funds: priced or bridge round ........................................................................................ 209 Matching the funding source to your business ..................................................................... 220 Pitfalls of taking investments from family and friends ........................................................222 Researching angel investors ..................................................................................................... 224 Sample bridge term sheet .........................................................................................................233
Starting any new business will require money. According to research by Edward Roberts, approximately 74% of high-tech startups surveyed obtained their initial capital from the founders of the business. For high-technology businesses, there is a greater likelihood that
the business will require money from a variety of sources as a result of increased capital needs. These sources may include initial monies invested by the founder or founders, money from family or friends, private investors (oftentimes called angel investors), bank loans, venture capital (VC) funds, government grants, bootstrapping (money earned from the business itself), or countless other sources.
