The whole category in one page.
CAPITAL ACCELERATES WHATEVER IS ALREADY HAPPENING, INCLUDING LOSSES
Establish that the business works at small scale before funding it to grow. Most small businesses need customers, not investors.
CUSTOMER MONEY IS THE CHEAPEST CAPITAL AVAILABLE
Deposits, advance payment, annual billing and shorter terms cost no ownership and no interest. Exhaust this before approaching anyone.
EQUITY SUITS BUSINESSES THAT CAN GROW SUBSTANTIALLY, NOT PROFITABLE STEADY ONES
Without a route for the investor to realise a return, there is no investment — and pursuing it anyway wastes months of founder time.
PAYING CUSTOMERS ARE THE ONLY EVIDENCE THAT COUNTS
Registrations, expressions of interest and letters of intent are argument. Revenue, repeat purchase and retention are proof.
FIX THE COMPANY RECORDS BEFORE YOU RAISE
Missing filings, undocumented agreements, mixed personal finances and intellectual property never assigned are what stop transactions — and contractor assignments take longer to fix than anyone expects.
LIQUIDATION PREFERENCE MATTERS MORE THAN VALUATION
It can mean founders receive nothing in a modest sale despite holding shares. Never sign investment documents without independent legal advice.
TELL INVESTORS BAD NEWS PROMPTLY, BECAUSE THEY HANDLE BAD NEWS AND NOT SURPRISES
WITH FAMILY AND FRIENDS, SAY PLAINLY THAT THEY MAY LOSE EVERYTHING, AND WRITE DOWN WHAT THE MONEY IS
AND RECOGNISE THAT TAKING INVESTMENT COMMITS YOU TO SCALE AND AN EVENTUAL EXIT, WHICH MANY FOUNDERS DISCOVER TOO LATE THEY NEVER WANTED
