13 Reasons Why Companies Do Not Get Funded

 

1) Poorly written business plan.​

2) ​Incomplete data and lack of documentation to support the business plan.

3) Unqualified or inexperienced management team.

4) No definitive goals or outline of the direction of the company.

5) Exaggerated projections.

6) ​Incomplete financial records including poor bookkeeping and accounting records.

7) ​A lack of understanding of the business or the appearance thereof. (An investor must be convinced that the management team knows everything there is to know about their business).

​8) Not having a clear working model of how the business will run. (This is in addition to a business plan).

9) Poorly written contracts and other important legal documents.

​10) Undefined relationships with vendors, employees, strategic partners, suppliers, etc.

11) ​Incomplete or non-existing data to define and substantiate the industry, the target market, the need and longevity for company products and services.

​12) A clear knowledge and understanding of who and what the competition is.

13) Overstated valuation of the company and no data to support the share price or company value.