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Karin Klein

Illustrations by Ray Vella

Karin Klein

Vice-President
Softbank Capital

• Not Understanding That Raising Money Takes Time. Entrepreneurs often underestimate the time it takes, [but] it takes longer than they predict. Fund-raising is a process; it’s almost a full-time job, in addition to managing. I advise that they start earlier so they don’t run out while raising capital. It gives them more leverage and time to find the right partner.

• Not Getting a Referral. It always helps to be introduced to a venture capitalist or an angel through somebody that they know. The unsolicited e-mails that get sent with a new business don’t often get priority. [An introduction] shows that the entrepreneur is connected. It’s such a small community—it would be odd if they couldn’t be introduced to one of the professionals.

• Presenting an Unfocused Pitch. A lot of times people come in with too many slides. It certainly shows thoroughness but also raises the question of whether one can focus.

• Not Describing Your Team. This is a key criteria in viewing someone more favorably. I like to see many of the key roles filled with a good management team.

• Not Knowing What Area/s Your Investor Invests In. If you are meeting with a VC firm, understand why you want to take money from that firm. Review their investment portfolio. Most good entrepreneurs do that.