How the Venture Game Is Played

For the past 20 years, I have been raising capital either for my own ventures or for my clients. I have run more than 20 start-ups, and I can tell you without question that the worst part of starting any company is raising capital. You have to be a masochist to want to go through the process.

Unfortunately, if you are looking to build a substantial company that you hope to sell for millions, either by being acquired or by going public, you will have to navigate the shark-infested waters of venture capital. Right now, the hair on the back of your neck is starting to stand up, but you are taking a few deep breaths and are thinking your blockbuster idea will make you millions.

OK, as they say at the amusement park before strapping you into the roller coaster, make sure you are physically fit and have no heart aliments, because when you get on this ride, your guts will be in more knots than a Philly soft pretzel. Here is the first set of hurdles you will have to manage:

...