In the post-dot.com crash era, investors throughout the capital markets food chain are returning to these fundamental basics for evaluating potential deals.
Entrepreneurs need to avoid meeting with more than one informal investor at the same time. Meeting with more than one investor often results in any neg¬ative viewpoints raised bv one investor being rein¬forced by another. It is also easier to deal with nega¬tive reactions and questions from only one investor at a time. Like a wolf on the hunt, if an entrepreneur iso¬lates one target "prey" and then concentrates on clo¬sure. he or she will increase the odds of success.
Whether or not the outcome of such a meeting is continued investment interest, the entrepreneur needs to try to obtain the names of other potential in¬vestors from this meeting. II this can be done, the en¬trepreneur will develop a growing list of potential in¬vestors and will find his or her way into one or more networks of informal investors. II the outcome is pos¬itive, often the participation of one investor who is knowledgeable about the product and its market will trigger the participation of other investors.