5 Walls Blocking the Startup Fund Flow


If an entrepreneur has been successful in pitching in to a venture capitalist, he can assume that the investor has already been impressed with the idea but that is not all because the main underlying factor here would be the trust that the investor has in the entrepreneur. Hence an entrepreneur rather than focusing on the just receiving money, he must work out a rapport and earn trust.

Pitching in for more than money

The right word for this would be the very popular American term ‘Grubstake’, “grub” meaning “food” with “stake” meaning “a share or interest in a commercial enterprise.” Some entrepreneurs get greedy and lose interest after getting big funds and they opt for grubstaking. Here the entrepreneur not only uses the money for his business or while he pitches in for funding he asks it for food, lodging and tools. This automatically goes back to the trust factor because the investor puts his hard earned money into business.

Informal education

Sometimes most entrepreneurs who have great ideas need not have great or formal education. While presenting a business plan to an investor, they often impress the folks but when it comes to the implementation part, few entrepreneurs fail miserably in their venture because of the lack of formal education.