More Entrepreneurs Need to be Told to not Raise Money

Seth Godin has a great post up titled The Struggle to Raise Money where he outlines a number of entrepreneur issues around raising money, including:

  • When things aren’t working, raising money seems like the answer
  • Raising money is a huge distraction and takes away from the core business
  • Most people won’t tell an entrepreneur to stop trying to raise money and instead help with executive summaries, pitches, and introductions
  • Investors want to invest in the company that can be worth billions, yet most won’t ever be worth millions
  • Investors want to see a working, scalable business where investing X will lead to 10X, and X is proven with hard data

My take: more entrepreneurs need to be told to not raise money. Now, that doesn’t mean they should never raise money. Rather, the majority of entrepreneurs that are trying to raise money don’t have their business to the point that it’s investable, thus it isn’t a good use of time.

Every entrepreneur should read The Struggle to Raise Money.

What else? What are some more thoughts on the idea that more entrepreneurs should be told to not raise money?

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