4. Master the art of fundraising
As CEO of Blue Sky Energy and co-founder of Mercato Partners, Alan E. Hall seeks to help demystify the funding process for up-and-coming entrepreneurs.
“I will spend 60 to 90 days in due diligence activities,” Hall says of his own funding decision process. “On average, I will invest in 5 percent of the companies I evaluate.”
When deciding whether to fund a company, Hall seeks to understand where a company resides in its business life cycle. Is it at the pre-revenue stage, still in the ideation phase, demonstrating proof of concept, actively launching, experiencing revenue growth, in the midst of scaling operations, poised for high growth, or potentially an acquisition target? Each stage presents distinct challenges and opportunities.
“I want to know [the team members’] backgrounds, experiences in the marketplace, the lessons they have learned and what successes they have had,” Hall says. “I want them to explain their vision, strategies, goals and timelines to be profitable and what risks they must overcome.”
Hall looks for a clear articulation of an entrepreneur’s vision, strategies, goals and timelines for achieving profitability, along with a candid assessment of the risks they must navigate. He seeks to understand customer needs, desires and pain points. Once these foundational questions are answered, Hall turns his attention to the solutions offered by the company to meet customer demands. He seeks to know the specifics of the product or service, including its specifications, competitive advantages and vision. Distinguishing the business from competitors is another critical factor, and Hall seeks information on unique technologies, intellectual property or pricing advantages.
Financial matters come under close scrutiny, Hall says. He examines past financial results and evaluates new financial projections, paying special attention to cash flows, timing and funding needs.
“I will want to know specifically how funding will be used, when, in what amounts, and how it will contribute to the company’s growth,” Hall says. He also seeks clarity on the expected return on his investment and potential exit strategies, whether through an IPO, merger or acquisition. Hall reviews licenses, regulatory requirements, permits, contracts and other legal documents while assessing potential risks and how they can be mitigated.
Ultimately, “I will want to know if the entrepreneur is willing to accept my advice and recommendations,” Hall explains. “The answer to this question will determine if I will invest in the company.”
5. Prioritize physical and mental health
The world of entrepreneurship often paints a glittering tapestry of success stories and tales of innovative minds reaping rich rewards after conquering challenges. Yet beneath this tapestry lies the harsh reality of entrepreneurial difficulties riddled with immense challenges, deep valleys and, often, loneliness.
“I think it’s important that in addition to the incredible stories shared about company successes, we also share the stories of the hard times [in a founder’s journey],” says Sunny Washington, co-founder and CEO of Seer. “The highs are incredibly high, and the lows are really low.”
There’s an unspoken pressure on founders to perpetually exude positivity, Washington says, which can sometimes veil the genuine struggles and fears lurking beneath. She believes it’s essential to recognize that embracing vulnerability isn’t a sign of weakness. On the contrary, it fosters a sense of community among founders. By acknowledging these challenges, entrepreneurs can derive strength from shared experiences and insights.
Starting a venture is an exciting—albeit isolating—journey. Even with co-founders on board, founders often find themselves alone, grappling with weighty responsibilities. “Even with a co-founder, the weight isn’t always equally distributed,” Washington says. This disparity becomes pronounced when one founder shoulders the primary financial burdens. Money-related stresses are especially taxing, as they’re intertwined with the livelihoods of the team.
Washington advises business leaders to prioritize connection with others in the community. She recalls a pivotal moment from her previous venture: “I was looking at this spreadsheet of 100 investors that I had met with and had gotten rejection from. I thought, ‘What if I had spent all that time talking to 100 customers? What would my business look like?’” It was a poignant reminder of where real business value lies.
Though entrepreneurship can be challenging, Washington believes the eventual taste of success makes the journey worthwhile.
“There’s something so satisfying in building and bringing a team around you, solving a problem that needs to be solved,” she says. 
