"Crack The Funding Code" by Judy Robinett - A MUST READ for Founders Seeking To Fund Their Startup

Whether a founder is looking to start a new business or grow an existing enterprise, finding appropriate sources of funding is always a major challenge. Only a small percentage of entrepreneurs are successful insecure funding from banks, angel investors, or venture capitalists. Author Judy Robinett offers a vital tool for increasing a founder's chances of success. "Crack the Funding Code" lives up to the promise of the subtitle: "How Investors Think and What They Need To Hear To Fund Your Startup." Throughout this well-conceived book, she and her team of collaborators and guest writers take the reader inside the mind and mindset of a wide variety of investors.

Having set the stage for helping the founder think like an investor, she leads the reader through a logical progression of topics: What kind of Investors are out there, How to choose the right target investors, How to secure an appropriate introduction, How to prepare for first and second meetings, The details of financial information that will be needed, How to read a term sheet, How to prepare for due diligence, and finally, How to decide whether or not to accept an offer of investment.

This book will be literally "money in the bank"  for any founder who assiduously follows the path that Ms. Robinett has laid out here. There are several important themes that stand out:

Never, under any circumstances, cold call a potential investor. That investor will surmise that if you lack the resources and resourcefulness to secure a warm introduction from someone the investor knows and trusts, then you do not have what it takes to build a successful company.

The initial scrutiny by potential investors will be of the person of the founder and his or her team. Is this a person of integrity, intelligence, hard work with a track record that leads me to believe they will make good use of any money I might choose to invest? Are they responsive in a timely and respectful manner? Are they open to coaching and constructive feedback? Would I enjoy interacting with them deeply over the next 3-5 years as together we build a company? It is only in later meetings that the investor will take a close look at product, service, and business plan.

Now that I have finished reading this MUST READ book, I plan to hand my copy to a first time entrepreneur who is just beginning the journey of securing funding for a startup. This book will make an excellent compass as he begins that long journey.

Enjoy!

Al