In other cases, new technical entrepreneurs also seem to confuse viability with fundability. Certainly, a non-viable business should be non-fundable, but many viable businesses are also non-fundable. Thus, when an investor declines your funding request, you need to curb your anger and understand the real reason for this outcome.
In my experience, here are the most common issues that cause funding requests for potentially viable businesses to be rejected, in priority order:
An inadequate business plan: Some investors say half the ideas pitched to them don't have any plan at all, even though some have great potential. Other entrepreneurs skip just a couple of the elements outlined in an earlier chapter on business plans. Investors know that technical entrepreneurs who start a business without a good written plan almost always fail.
An inexperienced team: Investors bet on the team more than the business plan. Your business model may be very...