Desperation Is Not a Good Look for a Startup

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

Founders raising funding are often under the gun with a dwindling cash account.

Some founders mistakenly use this as part of their pitch.

They emphasize the need the founder has rather than the return the investor will receive if they fund the startup.

Investors look for fundable companies.

Those in desperation are not good candidates for investment.

It's best to come up with a backup plan.

Some startups turn to consultation work to pay the bills.

Others look for grant funding to keep the lights on.

Still others reorganize the company and move to a bare-bones expense plan.

It's best to do this six months before the cash runs out, as it gives the founder time to launch another plan.

Waiting till there's only 30 days of cash left in the bank gives the startup too few options.

Desperation is not a good look for a startup, so it's best to avoid the situation altogether.

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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