What is soft money?

NGO’s, foundations, development finance institutions.

Investors that invest for reasons other than “making profit”.

Beware raising soft money.

It’s all good and well whilst you’re not generating profit, the problem arises when you actually start making money.

It’s at that point that your soft money investor will have clashing opinions on your business priorities.

It’s harder to raise hard money. But when your business starts making a profit, you will find it easier dealing with your investor.

Because as an entrepreneur, your primary goal is profit.