Time and time again I hear of startups or small early stage businesses not taking investment when it is offered. This is normally due to a difference of opinion in valuation. The owner/founder always thinks his/her business is worth more than the investor.

The reality is that the startup or early stage pre-revenue business is only worth what value someone puts on it at the time. There are no metrics to value a business on an idea or on a website or anything pre-revenue. Investors who offer money in pre-revenue situations are very difficult to find and if you find them …take the money! Do not get hung up over 5% or even 10% difference in the amount of shares they are asking for.

With the startup investment you can move your business forward.

Without it you are still on the starting line.

Investors who back start-ups are brave risk takers and should be admired just like entrepreneurs with great ideas.

So remember: a bird in the hand is worth at least two, if not many more, in the bush!!