Updated: Feb 28, 2022
Over the years I have met many people who believed that their idea was so innovative, so unique and so original that investors, banks, and government agencies would be queuing up to hand them money for the development and commercialisation of the product. I never actually saw that happen. The cold truth is that very few, if any, people are willing to fund an idea that the inventors or entrepreneurs themselves have not already invested in to at least the level they are seeking from others. There is an old adage to the effect that the best source of funding for start-up businesses is the three F's - fools, family, and friends. Whilst frivolous, there is some truth in it insofar as these are often the only sources of funds available to very early-stage inventors who are really at the exploration and discovery stage of their idea or product. Given that 50% of start-up companies are gone out of business within five years and that half of these are in the consumer goods sector, it is not surprising that investors, venture capitalists, banks and government agencies are sceptical and wary of putting money into unproven ideas that have not even been market tested.