How can a first-time entrepreneur raise money for a capital intensive business?

This is a video response to a question I answered on Quora:

In case you can’t see the video, here’s the transcription:

“I love difficult businesses. Many capital intensive businesses are difficult businesses, and I love them because they’re “willpower” businesses, and “execution” businesses.

Being a first time entrepreneur trying to raise money in something that’s both capital intensive and a difficult project to execute is going to call for the investor to really be buying you and your chops as a business person. If you’re young and haven’t had the opportunity to prove yourself in that way, find some way to prove those business chops; prove that you can execute; prove that you can attack a gnarly problem and that you belong in a willpower business.

If you can figure out how to create a minimum viable product, prove the market somehow, study who the buyers of this capital intensive business services or products are going to be, develop a relationship with them, prove you’ve successfully broken down the barriers to entry in that business…

I think you have to get your nails into the wall and prove that you can fight in this type of business environment.

Again, the investor is just buying the entrepreneur.”

Leave a Reply

  • (will not be published)

XHTML: You can use these tags: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>