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Managing expectations throughout the process is crucial from "summary" of The Art of Startup Fundraising by Alejandro Cremades
In the world of startup fundraising, managing expectations throughout the process is absolutely crucial. This applies to both the entrepreneurs seeking funding and the investors they are approaching. Setting realistic expectations from the beginning can help avoid misunderstandings and disappointment later on. Entrepreneurs should be transparent about the current state of their business, including any challenges or obstacles they may be facing. By being honest about their strengths and weaknesses, they can build trust with potential investors and present a realistic picture of what they can achieve. Investors, on the other hand, need to be clear about their criteria and expectations for the startups they are considering investing in. This includes being upfront about the amount of funding they are willing to provide, as well as the level of involvement they expect to have in the company. Throughout the fundraising process, both parties should communicate openly and regularly to ensure that everyone is on the same page. This can help prevent misunderstandings or misalignment of goals, which can ultimately lead to a failed investment. By managing expectations effectively, both entrepreneurs and investors can increase their chances of success and build stronger, more productive relationships. It is essential to set a foundation of trust and transparency from the beginning, as this can pave the way for a successful partnership in the long run.- Where uncertainties and risks abound, managing expectations can provide a sense of stability and clarity that is invaluable. It is a skill that requires careful planning, open communication, and a willingness to adapt as circumstances change. Ultimately, those who can master this art will be better equipped to navigate the challenges and opportunities that come their way.
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