How To Put Funds Inside Paypal?

How should we put it across to the VC about the mistake of asking less funds than required?

• We met this awesome VC, who not only liked our demo product but also our team. As we were first time entrepreneur's we hired a VC consultant, who managed to convince us if startup ask for money more than 500k no VC would be interested in us, and made us ask only 350k where as for us to reach break even we need 800k in 18 months. How to put it across to VC about this? What will be his prospect? Will he doubt our capabilities as entrepreneurs?

• Answer:

  When you approach the investor, he will be asking himself two questions: Am I throwing good money after the bad? What do they need to bring this investment to a successful conclusion. As you can see, the difference between the two is whether he will be convinced that the initial investment will pay off, i.e - that you have a viable product. In order to convince him that you are worthy of continuing investment, you need to prepare yourself: Projections of future income and return on investment; Concise reasoning why additional fund is needed, to include P&L current and budget, with projections; A person capable of presenting your request in an articulate, convincing way; Readiness to negotiate, and a good negotiator on the team. Notice this has nothing to do with the psychology of whether you're good entrepreneurs, rather a rational, business-like approach to your project. For the investor, it's all about making the money. Good luck!