Raising Capital from a VC Pitch Tip

As I have written about before, one of the things I am passionate about and invest my time in is The Founder Institute. FI is an incubator program with locations around the world that helps build meaningful companies.

As part of my mentoring, I exchange emails with founders building companies. One recent email had a pitch that asked for capital to: ‘build and test’ the product. This was something the screamed, turn around and run.

Investors don’t like to pay for build & test. They want to pay for ‘we’re growing too fast and can’t afford to finance growth’. If you have to leave the VC meeting because servers are crashing because there is too much traffic on your site…. those are the companies that can maximize valuation and minimize equity paid.

How can you craft your business so it is in a position to grow that fast?