Want to launch a startup but unsure where to begin raising capital effectively? Keep the following points in mind:

1. Do not confuse the ability to attract capital with the ability to succeed. “Fundable” companies can persuade some venture investor to believe they can reach 100 million dollars. If a business is worth only 10 million, only friends, fools, and family are interested.

2. An appealing “date” with an investor is characterized by practicality, traction (your market), transparency, candor and enemies (competitors). Then your results will exceed expectations.

3. Public relations (PR) is better than advertising because it is other people talking about you. Get a referral from a lawyer, a professor or a senior executive at a company in the investor's portfolio. If you cannot get any referral, write an email yourself so that, after reading it, the investor thinks: “I need to know more about this guy.”

4. Your pitch should not ramble or contain nonsense that makes readers (listeners) feel terrible. When an investor says “no,” you should continue; they will conduct a feasibility assessment or simply not care. If they are not interested, do not waste either party's time. Sometimes they speak merely to show what a wonderful and supportive investor they are, but in reality it is only a lie. Do not overstate your own merits either, because if your idea is good, dozens of investors will recognize it and participate; this world is full of smart people.

5. You can also attract funding from “angel-style investors,” who invest their personal money. Do not underestimate them. They care about liquidity; their motivations are to give back to society, stay current with technology and make money.

Make sure they are sophisticated investors with expertise in your field, because you also want their knowledge. Make your story easy for partners to understand. Sign agreements with established people so you can attract a group of backers. Be kind, because angel investors tend to “fall in love” with businesses more than venture capital investors do.