A venture capital investment firm in Waltham, Massachusetts, Moser Capital Management operates under the leadership of Nicklaus (Nick) Moser. One of Moser Capital Management’s areas of expertise is startup fundraising.

Taking the modern business environment into careful consideration, experts have identified several common mistakes that startups make when securing the funds to bring their businesses to scale. Although fundraising is an essential component of any startup business strategy, approaching it incorrectly wastes time and effort and could put a new company out of business.

For example, Inc. cautions against the futility of sending cold emails to potential investors. Without an introduction from a respected business person, an email inevitably fails to make an impact. To show potential investors something concrete, Inc. stresses the importance of writing a detailed letter that includes the product, market, timeline, and general strategy.

Forbes stresses the importance of laying the proper groundwork for fundraising and waiting for the right time to seek that fundraising. Since most venture capitalists want to see proof of concept before investing, wise startups establish a record of small-scale success before reaching out to investors. Startups also should consider pre-seed and seed funding to aid in product development and initial marketing outreach.