How to Make AI Technology Work: Moving Beyond the 95% Failure Rate
AI dominates business conversations, but for many organizations it remains mostly hype with little real impact. An MIT report found that 95% of enterprise AI projects deliver no measurable value, a figure that is likely conservative given how many stalled pilots and abandoned proofs of concept never get counted. The core problem is not the technology itself but how organizations design, govern, and deploy it.
The first major misconception is treating Large Language Models (LLMs) as magical, autonomous problem-solvers. LLMs are powerful tools, but like a bright intern, they only create value when given clear objectives, structured workflows, and explicit quality controls. Without direction, they generate impressive outputs that rarely align with real business needs. The second misconception is experimentation without a hypothesis: teams “play” with AI, hoping value will emerge, instead of starting from a defined business problem and expected outcome. This abandons basic scientific discipline and leads to scattered pilots that never scale.
Turning AI into a reliable business asset requires the same rigor as any other strategic initiative. Before technical work begins, three pillars must be in place. First, success metrics must be defined upfront and tied directly to business outcomes such as cost reduction, customer satisfaction, or decision speed—not model accuracy alone. A system with 98% test accuracy is irrelevant if it doesn’t move a meaningful business metric. Second, stakeholder engagement must be continuous. The people whose work will change need to be involved early so requirements reflect real workflows, pain points, and constraints rather than theoretical use cases. Third, proven project management discipline must guide implementation: clear scope, realistic timelines, and feedback loops that enable course correction. Robust quality control is non-negotiable; AI systems require guardrails, validation, monitoring, and human oversight at critical decision points.
Organizations that choose problems carefully, define success in measurable terms, and design human-plus-machine workflows will separate themselves from the 95% that fail. Those who chase hype and experimentation for its own sake will keep accumulating expensive demos instead of durable competitive capabilities. If you want to generate tangible business results with AI, 4SeeAdvisory can help.
(The original blog was posted by 4Seeadvisory partner David Evans: https://sentiero.vc/2025/10/01/how-to-make-ai-technology-work-moving-beyond-the-95-failure-rate/)
AI Investing: From Buzzwords to Real Businesses
AI is no longer experimenting; it’s about execution. For investors, the real challenge isn’t finding AI startups, but identifying which ones will create durable, long-term value.
Start by looking beyond the model and focusing on the problem being solved. The strongest AI companies tackle real, high-impact business problems where intelligence directly improves revenue, cost efficiency, or risk management. Clear customer ROI matters more than technical sophistication.
Next, evaluate the founding team. Successful AI startups blend deep technical capability with strong domain and execution experience. Great algorithms don’t build companies—teams do.
A critical differentiator is a data advantage. Proprietary data, deep workflow integration, and switching costs often provide more defensibility than the AI model itself, especially in an increasingly open-source ecosystem.
Investors should also pay close attention to unit economics and compute discipline. AI can scale fast, but unmanaged cloud and inference costs can erode margins just as quickly. Sustainable growth depends on financial rigor.
Finally, beware of hype. Many AI startups sound impressive but lack real adoption. Favor companies that solve a clearly articulated business problem with a measurable impact, leading to early revenue, repeatable sales, and a clear path to scale.
In AI investing, lasting outcomes come from clarity, execution, and economics—not buzzwords.
Establishing Trust with Startup Investors
In the competitive world of early-stage venture funding, building trust is crucial. Investors don’t just fund ideas or markets; they back founding teams they trust to manage resources wisely, especially under uncertainty. Research on successful fundraising shows that credibility must be built intentionally across several areas.
To begin with, being radically transparent is essential. Top founders share detailed metrics like burn rate, runway, unit economics, and customer acquisition costs through regular, standardized updates. This openness decreases information gaps and demonstrates maturity. In fact, startups that send monthly investor updates tend to close additional funding rounds 30–40% faster than those with irregular communication.
Next, consistently delivering on promises transforms words into results. Hitting key milestones; such as product launches, revenue targets, or new partnerships shows dependability. If plans change, quickly acknowledging issues and sharing revised strategies maintain trust much better than late disclosures.
Alignment between founders and investors also speeds up trust-building. Investors look for teams whose incentives, risk appetite, and long-term vision match their own. Choosing investors carefully, having honest discussions about governance, and developing relationships beyond mere transactions help create lasting partnerships.
Lastly, acting ethically and with integrity is essential. Founders who treat investor funds with fiduciary care regularly attract stronger investor groups and better terms.
Overall, trust is earned through clear communication, consistent performance, shared goals, and unwavering professionalism. Startups that embrace these practices not only raise money but also create enduring networks of investors who can support them through multiple growth stages.
Why Solution Selling May Be Holding Your SaaS Growth Back
For decades, enterprise sales success was built on relationships—dinners, conferences, and informal networks. That playbook no longer works. Today’s buyers, particularly in the U.S. SaaS market, arrive having already benchmarked vendors, read peer reviews, and defined shortlists. A polished relationship without substance rarely survives the first serious buying conversation.
What customers increasingly value is insight. For example, a mid-market CFO evaluating a revenue analytics platform is not looking for a generic “end-to-end solution.” They want a vendor who understands why forecast accuracy breaks down after $5M in ARR, how RevOps misalignment creates hidden leakage, and what trade-offs exist between automation and control. Vendors who bring that perspective earn credibility early.
Solution Selling, however, is often misapplied. It is highly effective in complex, multidimensional problems—such as selling a cybersecurity platform into a regulated financial institution, where risk exposure, compliance, and integration justify long sales cycles and deep domain expertise. In these cases, tailoring a solution creates defensible value.
For SaaS companies under $10M in revenue, the economics are different. Investing heavily in bespoke solution selling—long timelines, custom demos, extensive discovery—can dilute focus and slow growth. The priority should be clarity: a sharp ICP, a well-defined problem, and a repeatable value narrative. Solution Selling is powerful—but only when the complexity truly demands it and you have the resources to support it.
The Rolodex Fallacy
For CEOs of sub-$15M ARR SaaS firms, the “Rolodex strategy”—trusting a few warm contacts to fuel growth—rarely scales. A Rolodex opens doors; it doesn’t build a pipeline - worse, being an opportunistic strategy, it can sometimes open the wrong doors.
Enterprise sales are a chain of ands: the right buyer and urgent pain and budget and timing and technical fit and security review and procurement and legal and referenceable proof. Because any “and” can break, relying on a narrow network creates a brittle funnel and unpredictable revenue.
Replace founder-as-super-rep with a system:
ICP & segmentation: Where you win, why, and who feels the pain now.
Message & proof: Quantified outcomes, reference design, security posture.
Multi-channel demand: Targeted outbound, partner co-sell, events, PR/content, intent data—plus product-led growth (PLG) where feasible.
Pipeline discipline: Clear stages, SDR rigor, weekly conversion math, deal hygiene, feedback loops in the sales process.
Capacity & governance: Enablement, quotas/territories, simple dashboards, and a hiring plan tied to coverage.
Measure success by coverage (3–5X quota), stage-to-stage conversion, CAC payback, and win rate—not by how many executives you know.
At 4See Advisory, we help CEOs replace Rolodex-only selling with a repeatable GTM engine that compounds. If you’d value a quick GTM diagnostic, we’re happy to share a concise checklist.
The Silent Killers: Why Great Companies Fail Beyond the Balance Sheet
We often hear that companies fail due to a bad product, fraud, or running out of cash. But what about the successful, well-funded companies that still falter? The real failure often lies in the subtle, internal cracks that widen over time.
The most common silent killer is cultural inertia. A company becomes a prisoner of its own past success, clinging to "the way we've always done it." This rigid culture stifles innovation and blinds teams to market shifts and emerging competitors. The result is a slow, steady decline into irrelevance.
The second is a breakdown in communication and alignment. As organizations grow, departments can become isolated silos. When strategy isn't cascaded clearly, teams work at cross-purposes. The sales team promises what engineering can't build; marketing campaigns miss the mark because they're disconnected from customer feedback. This internal friction grinds progress to a halt.
Ultimately, failure isn't always a dramatic explosion. It's often a quiet erosion—of agility, of shared purpose, and of the ability to listen and adapt. The antidote? Foster a culture of psychological safety, champion challenging communication, and relentlessly question your own assumptions. This can be easier said than done and often calling in an independent resource will encourage people to show where the cracks are forming so they can be fixed early on. The greatest competitive advantage is the ability to evolve.
Would love to hear your thoughts. Drop us a note at info@4seeadvisory.com
Why Growth-Stage Startups Get Stuck — and How to Get Unstuck
Many startups hit a “growth ceiling” and stall around $10–20 million in revenue, the moment when early hustle and instinct stop scaling. What once fueled growth now creates bottlenecks and friction. Processes buckle, decisions slow, and clarity fades.
The plateau stems from six predictable forces.
First, loss of differentiation and innovation. Competitors catch up, early adopters move on, and the product stops evolving. What was once distinct becomes ordinary.
Second, leadership bottlenecks. Founders who once made every decision struggle to delegate as the organization expands, leaving teams uncertain and execution uneven.
Third, operational inefficiency. Manual processes, scattered data, and a lack of operational discipline turn speed into chaos.
Fourth, capital constraints and poor cash flow discipline. Margins tighten and receivables stretch, starving growth initiatives. Financial indiscipline erodes margins.
Fifth, go-to-market stagnation. Sales rely on founder networks and luck rather than scalable systems. The absence of a structured, data-driven go-to-market engine leaves growth dependent on heroics rather than process.
Finally, strategic drift and cultural decay. As complexity rises, mission clarity fades, and politics replace urgency.
Breaking through requires deliberate reinvention. Most startups don’t die from competition - they die from complexity. The antidote is clarity, focus, and continuous reinvention. Starting with diagnosis—an honest audit of market, product, leadership, and finances. Refocused strategy around a clear customer problem and value edge. Professionalizing leadership and systems so the company can operate without constant firefighting. Balancing efficiency with innovation, streamlining what exists while funding what’s next. And above all, recommitting to vision and culture—the purpose and discipline that make scale possible.
At 4See, we have 100s of years of experience dealing with these issues. If you want to “GET UNSTUCK,” reach us at info@4seeadvisory.com
M&A Through the Evergreen Lens: A Path to Sustainable Growth
M&A Through the Evergreen Lens: A Path to Sustainable Growth
Too often, M&A is viewed as a race for scale, quick synergies, or short-term gains. But when you apply the Evergreen Business Model lens, the approach changes:
Strategic fit matters more than just financials.
People are assets, not costs to cut.
Integration happens at a sustainable pace.
Growth is measured in decades, not quarters.
In a volatile market, this mindset builds businesses that are resilient, trusted, and valuable for the long term.
A Path to Sustainable Growth
When viewed through the Evergreen lens, M&A is not simply a deal—it’s a partnership for shared growth. It’s about building companies that last, not just deals that close.
For entrepreneurs, CEOs, and boards considering acquisitions, the question isn’t only “What do we gain now?” but rather “What will this mean for our people, purpose, and profitability ten years from today?”
That’s the Evergreen path: sustainable growth that compounds, relationships that endure, and businesses built to stand the test of time.
M&A isn’t just about closing deals — it’s about creating legacies.
👉 Curious how Evergreen principles can reshape your growth strategy? Let’s talk (info@4seeadvisory.com)
Supercharge Your Tech Startup using Purposeful AI Framework
In the fast-evolving AI landscape, startups must move beyond chasing hype to a purposeful AI framework which is summarized below:
First, prioritize flexibility at the core. Build a shim layer to manage randomness and uncertainty at the model level. This abstraction layer lets you hot-swap models like Claude Sonnet or Llama without overhauling your stack, ensuring adaptability as commoditization accelerates.
Second, target the application layer over raw models. Large language models are the fastest depreciating asset in the world, soon open-sourced and worthless like GPS chips. Innovate atop LLMs: think AI agents for customer service or robotics hardware to capture real value, much like Uber on GPS.
Third, bootstrap data smartly. Use the ‘give to get’ approach: reward users with points for uploading proprietary data, redeemable for AI usage. This fuels training while building engagement.
Finally, empower your team to utilize human strengths. Foster adaptability of humans: train them on natural language interfaces, the new programming language is English and nonlinear prompt engineering, leveraging creativity and EQ over rote math.
In summary, embrace modularity; Focus on apps, not models; Incentivize data sharing and upskilling for human and AI synergy. By iterating methodically and experimenting, startups can turn AI into a platform shift accelerant, not just a fleeting trend.
Contact us at 4seeadvisory.com
Learning to say “No” - why opportunistic growth can be fatal
We've seen it countless times: a promising deal lands on a CEO's desk, revenue projections look attractive, and suddenly the entire organization pivots to chase it. Six months later, core prospects are short changed, resources are stretched thin, and the "opportunity" has consumed more than it delivered. An example could be a SaaS company focused on supply chain for manufacturing getting an opportunity in the healthcare sector where they have no footprint or experience.
The hidden costs of opportunistic growth:
· Diluted brand positioning that confuses your market
· Lack of domain knowledge leading to subpar performance
· Lost momentum in proven revenue channels
Smart growth isn't about saying yes to every opportunity—it's also about saying no to the wrong opportunities that don’t align with your strategic vision.
At 4see Advisory, we help sub-$100M companies distinguish between genuine growth catalysts and expensive distractions. Our systematic approach to go-to-market strategy ensures your US market expansion builds on your strengths rather than fragmenting your focus.
The bottom line: Sustainable revenue growth requires disciplined opportunity evaluation, not opportunistic decision-making.
Ready to grow strategically instead of randomly? Let's talk about turning your market presence into predictable revenue growth.
Contact us at 4seeadvisory.com
M&A: The Real Battle Begins After Closing
M&A isn’t just about identifying the right targets or negotiating impressive financial terms—it’s what happens after Day One that truly defines success. In fact, roughly 70–85% of deals fail to deliver anticipated value, with many underperforming due to poor integration planning, cultural clashes, or underestimated complexity
To avoid becoming a statistic, your focus must shift to what comes next:
Holistic culture building: Nearly 30% of failed mergers cite cultural integration issues as a root cause.
Talent assessment: Identify and retain key leaders while evaluating role fit in the merged entity.
Systems integration: Align IT, finance, back-office platforms—technical cohesion is mission-critical.
Processes and policies: Decide what to keep, adapt, or sunset—clear, unified workflows matter.
Communication: Internally, you must broadcast the vision, the roadmap, and new ways of working. Externally, confidence must be sustained—for customers and investors alike.
Governance and value tracking: Maintain a dedicated integration team; Companies have captured up to 9% more value by doing so
Investment in integration: In recent years, 59% of companies spent ≥ 6% of deal value on integration, and successful acquirers are twice as likely to do so
The hard work post close can’t be an afterthought. It’s the bedrock of value realization. Meticulous planning, culture, and communication turn deals into lasting success.
Should I stay or should I go: Deciding whether to exit or hold a Business
Few choices weigh more heavily on an entrepreneur than whether to sell or keep a business. In much of the entrepreneurial world, the default path is “build and flip,” often on a five-year cycle. Far less is said about the merits of holding. Should you take an attractive offer and move on, or continue compounding value inside a company you know deeply? The answer: it depends.
Why Holding Often Wins
Holding lets compounding work without interruption. A business that earns steady returns on equity creates exponential growth over decades. Selling, by contrast, triggers “leakages”: taxes, transaction costs, idle capital, and the risk of reinvesting in something weaker. These frictions erode wealth quietly but meaningfully.
Beyond the numbers, long-term ownership compounds intangible assets—customer trust, brand credibility, operational strength, and team capability.
When Selling Makes Sense
Still, holding is not always best. Today’s entrepreneurial landscape includes several forces that push toward an exit:
Investor timelines: PE firms or minority investors often require liquidity on fixed schedules.
Founder limits or conflict: A business may surpass its founder’s skills or stamina, or misaligned co-founders may stall progress.
Strategic decline: Disruption from AI, regulation, or new competitors can erode moats faster than owners can adapt.
Complacency and culture drift: Success can breed inertia, leaving the company exposed to hungrier rivals.
Personal factors: Burnout, health, or family priorities frequently drive exits.
Often, entrepreneurs want to sell when they should hold and hold when they should let go. A clear decision framework, supported by experienced and objective perspectives, is essential to making the right call. Talk to experts at 4SeeAdvisory.
Beyond the Front Desk: How AI Is Fixing a Common Multi-Site Clinic Problem
Across dental, dermatology, fertility, physical therapy and other healthcare chains, the pattern is the same. Some locations are overbooked; others sit half-empty. Front desks scramble to answer calls and emails. Intake scripts vary wildly. Leads get lost in the shuffle. Call centers and web forms were supposed to solve this. They don’t. Calls are missed, forms linger in inboxes, and staff turnover keeps the training cycle spinning.
What’s working now is different: an AI intake coordinator trained on the clinic’s exact process. Not a generic chatbot — a system that replies instantly to new leads, answers patient questions, sends pre-visit instructions, and books appointments at the right location without human handoff. The advantage is scale. When demand spikes — back-to-school cleanings, holiday rush, seasonal skin treatments — clinics can spin up more AI “agents” instantly. No hiring. No retraining.
The smart clinics aren’t stopping at reactive support. They’re using AI to:
• Reactivate dormant patients
• Remind families of checkups
• Follow up after procedures
• Offer tomorrow’s open slots to people who showed interest today.
It’s consistent, 24/7 patient engagement without adding headcount — and it keeps revenue from slipping away. For multi-site operators and private equity groups, this isn’t just about efficiency. It’s about turning every lead into a booked visit, no matter which location they land on.
Are you an operations or technology leader considering implementing conversational AI? Let’s connect.
#ConversationalAI #Healthcare #PrivateEquity #Dentistry #Dermatology #Fertility #Orthodontics #Nurix
Leadership via Mentorship: The Silent Multiplier of Impact
In today’s fast-paced, high-pressure business world, leadership is often associated with vision, decision-making, and results. But behind many high-performing founders, resilient teams, and adaptive businesses is a quieter, more lasting force: mentorship.
What Is Leadership via Mentorship?
Leadership via mentorship means more than giving advice—it’s about developing others to lead. It’s an intentional investment in people, designed to build trust, transfer wisdom, and create a multiplying effect on growth and performance.
Rather than simply managing outcomes, mentor-leaders scale their impact by helping others grow into confident, capable leaders themselves.
Mentorship in Action
In our own work mentoring founders and business owners, we’ve seen this impact unfold in powerful ways:
🔹 A founder prepares a future COO through structured mentorship
🔹 A finance lead transitions into a strategic thinker under a mentor’s guidance
🔹 A burned-out owner regains clarity after honest, ego-free conversations
In each case, the mentor didn’t just support the business—they multiplied the leader’s ability to perform and grow sustainably.
Leadership That Lasts
Mentorship is a force multiplier. It builds not just businesses—but cultures, systems, and future leaders that thrive long after you’ve left the room. Let’s build leadership that multiplies.
Are you a founder or SMB leader looking for strategic mentorship? Let’s connect.
Winning the startup game: The Strategy Construct
A winning startup strategy transforms a vision into sustainable success by aligning ambition with actionable steps. To craft one, begin by defining your core vision and mission. Your vision is the big-picture goal, while your mission specifies what you are doing today.
Understanding the market is key, so research customer pain points and behaviors using tools like surveys and MVPs that real customers can interact with. Analyze competitors to identify gaps you can exploit, ensuring your offering stands out. Set specific goals and prioritize 2-3 key metrics, such as customer acquisition cost, new account signups, etc. to track progress effectively. Be prepared to review and change metrics, as needed, periodically.
Build a plan to outline your value proposition, customer segments, and revenue streams. Review quarterly to stay responsive to market shifts. Execution is critical for a strategy to work, so assemble a team with diverse skills and establish streamlined processes using tools. Outsource non-core tasks at an appropriate cost to stay efficient.
Leverage customer feedback to refine your product and strategy. Act on observable patterns, not discrete comments, to avoid missteps. Continuously measure performance with analytics tools, reviewing metrics monthly to iterate and improve. A winning strategy evolves with data and discipline. By defining your mission, understanding your market, setting clear goals, and staying adaptable, you pave the way for growth.
Want to create a winning strategy? Talk to 4See Advisory.
Why Your Sales Team Isn’t Closing – And How to Fix It
If your sales team isn’t closing deals, the issue likely isn’t effort—it’s alignment. At 4see Advisory, we often see small to mid-sized companies (<$100M in revenue) with strong offerings but inconsistent U.S. market performance. The root cause? A misaligned go-to-market strategy.
Many international CEOs underestimate the complexity of the U.S. market. Sales teams are left chasing the wrong leads, relying on tactics that don’t resonate locally, or lacking the strategic clarity to move opportunities across the finish line.
Fixing this starts with asking the right questions:
Do we have an offering that addresses a known need in the market? e.g. a new IT services company without any clear differentiation wanting to enter the US.
Are we targeting the right segments? Are you going after any lead instead of a sharp focus on clearly defined targets?
Does our messaging clearly differentiate us in this market? Do you stand out or are you a “me-too” (in certain markets “me too” may still be a winning strategy in the short term)
Do our sales and marketing efforts support one another—or operate in silos? Are your marketing campaigns running independent of what your sales teams have identified as target areas/segments?
At 4see, we help CEOs reframe their approach. We bring clarity to go-to-market execution, align sales and marketing with U.S. buyer expectations, and ensure teams are equipped with the strategy—and tools—they need to close.
If your team is stuck in “almost closed” mode, it’s time for a reset.
Let’s talk about how to unlock your growth in the U.S. market.
Positioning for Acquisition: Think Like Your Future Acquirer
For many early-stage companies, a well-timed acquisition can be the most valuable outcome. But great exits aren’t luck — they’re built through strategic clarity, smart positioning, and targeted outreach. From a timing perspective, the best time to sell is when you don't need to, so you have the power of negotiation on your side.
Here’s a 3-step approach to get acquisition-ready:
1. Think Like a Buyer
Step into your acquirer’s shoes. Are they looking to grow revenue, enter new markets, add marquee client logos, acquihire talent or IP, or eliminate a competitor? Knowing their strategic drivers helps you tailor your story and shortlist the right buyers.
2. Define a Realistic Value Band
Forget arbitrary revenue multiples. Strong valuations are grounded in both market comps and the strategic value you create for the buyer. The goal is to build a defensible pricing band that reflects your unique impact in their ecosystem.
3. Build a Smart Outreach Strategy
A successful exit starts with a compelling narrative. Combine that with a focused, often “off-market” approach to reach high-fit strategic and financial acquirers — and you’ll increase the odds of finding the right buyer at the right price.
M&A success favors the prepared. Start early, think strategically, and lead the process — before someone else defines your outcome.
Do you truly know the risks your company faces?
Launching a startup is exhilarating but fraught with risks, often more than founders realize. Early-stage companies, focused on growth and optimism, frequently underestimate the variety and severity of threats they face. While most entrepreneurs recognize obvious risks like competition, pricing pressures, and capital shortages, the real danger often lies in hidden or underestimated risks that can derail a business before it scales.
Founders, immersed in building momentum, may overlook ongoing threats beneath the surface. The relentless focus on growth can create a false sense of security, masking subtle warning signs. For instance, a startup might celebrate early customer traction without realizing those customers aren’t truly engaged - a disconnect that becomes clear only when growth stalls or churn spikes. Success may bring additional capital, with mismatched goals of investors and founders, which sometimes leads to collapse. Failing to recognize these underlying risks means problems often escalate unnoticed, leaving little time for correction.
Legal issues, security vulnerabilities, and key-person dependencies are equally significant. Beyond these, rare but catastrophic “black swan” events can cripple a company overnight-risks that founders seldom anticipate or prepare for.
Ultimately, the early days of a startup demand not just vision and drive, but also a clear-eyed assessment of potential pitfalls. Recognizing and understanding these risks is the first step toward building a resilient, lasting company.
Do you know how to identify, assess risks, and build resilience? Talk to experts at 4SeeAdvisory.
Building the Right Team Is Easy
(Said no one, ever)
If building the right team were easy, every startup would be a unicorn, Slack would be peaceful, and no one would ever ghost you after a second-round interview.
But here’s the truth:
It’s not easy. It never has been.
That said, it becomes a whole lot easier when you stop chasing perfect résumés and start prioritizing what matters:
• Shared values
• Complementary strengths
• A bias for action
• The ability to laugh through chaos (yes, that’s a skill)
The best teams aren’t just found—they’re forged. And great leaders don’t just hire—they build environments where people want to show up, grow, and win together.
They align on purpose, communicate with clarity, and foster trust that’s stronger than job titles. They understand that chemistry beats credentials, and momentum is built on mutual respect.
Building the right team is a leadership skill, not a talent acquisition hack. It requires vision, empathy, and a long-term mindset. The right people will challenge you, stretch you, and elevate the mission—if you’ve created a space where that’s possible.
Conclusion
Building the right team may not be easy, but it’s the single most impactful thing a leader can do. The key?
Approach it with intention, empathy, and patience, and you’ll build a team that’s not just capable, but unstoppable.
#Leadership #StartupLife #TeamBuilding #GrowthMindset #FounderLessons #Startups #Hiring #CultureMatters #WorkHumor #4seea
Fund Raising: Science behind the Art of Raising Capital
Eureka! You get an idea and decide to develop it and go after it to create a business based on the idea. As you grapple with the things like technical feasibility, MVP, implementation, team and skills, it quickly dawns on you how much money is needed immediately and in the near future.
The key ingredient of a business is the funds needed to implement the idea! Yes, funds are like blood supply for the company. And fund raising for a business is an art which entrepreneurs have to learn fast.
Fund raising is a necessary part of the startup journey. Fund raising involves creative elements like storytelling, relationship-building, and persuasion. The startup founders have to master these aspects to be successful in raising capital.
On the other hand, key scientific principles for fundraising are data driven
(a) Market research to validate ideas
(b) Financial modeling and valuation techniques to support projections and decide the target amount to be raised,
(c) Investor targeting to find the right fit, and
(d) Pitch deck optimization to communicate effectively.
The more the data, the more scientific the approach, the more risks are managed, the more predictable are the outcomes.
Together, the science and art of fundraising form a winning formula. The startups have to keep getting this balance right at each stage to have a chance at glory.