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Start-up funds facing tough markets, or just marketing reality?

September 27, 2012

Interesting article in Traders Magazine, where a hedge fund manager was talking about how difficult it was for new funds to raise funds. “Assume you are going to reach out to 1,000 people, talk to 100 to get to one investor,” he laments.

On the one hand, I am sympathetic to funds that are facing a more difficult environment. On the other, the funnel that this manager describes is basically what everyone who sells into B2B has been facing since, like, forever. And it makes you wonder what things used to be like.

Maybe something along the lines of “Talk to a few people, have them attract a huge crowd that throws a few billion your way…”

It looks like the jobs act has come at the right time for funds that are having trouble differentiating themselves in a market that no longer throws money at start-ups with good traders at the helm. However, these funds are going to have to come up to speed really fast on how marketing is actually done… and how much work it requires.


From → commentary, startups

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