“Many times startups seeking capital from professional or institutional investors focus almost exclusively on the financial aspects of the pending transaction. This is misguided to a degree as the primary benefit professionals bring to the negotiating table is not their dollars but rather their sense, experience, contacts and their existing relationships.
Entrepreneurs who have prior experience with raising money have learned this lesson. Successful entrepreneurs almost inevitably get more than a cash infusion, they get a partner with additional non-financial resources dedicated to seeing them succeed….
If you are seeking early investment, seek out and find those financiers that can bring more to your start-up venture than cash. It will pay dividends far in excess to effort required to convince seasoned pros that your venture is worthy of their consideration.”
Read more in Drakeview post: Simple enough.