The goal of this chapter was to clarify the startup funding process for technical entrepreneurs, especially as it relates to external investors, and provide specific recommendations to improve your odds of success.

Most importantly, every investor expects to see some business traction, both before and after a funding request. If you have been working 20 hours a day, and spent your last dollar, but have no results to show, investors will be sympathetic, but will probably tell you that your dream doesn't have wheels. Traction means forward progress.

I hear a lot of technical entrepreneurs contemplating their great idea for several years with little discernable progress, and looking for money to start. Talk and time are cheap, but they need to understand that investors judge past results as a good indicator of future expectations. Here is my summary of the key milestones to complete, which will signal traction and fundability to investors, as well as to your team: