Dror Tamir – Don’t Put All Your Eggs in One Basket When Raising Capital

<p><strong>BIO:</strong> Dror Tamir is a serial food and nutrition entrepreneur with a passion is to improve the health of children and families through better nutrition. He is the CEO &amp; co-founder of a startup, Hargol FoodTech, the world’s first commercial grasshopper protein producer.</p><p><strong>STORY:</strong> Dror was looking for investors when one particular one showed interest in being the lead investor. He was super excited about this opportunity so much that he put his entire focus on this investor. After eight months of due diligence, the investor refused to follow through with their promise leaving Dror with zero investment.</p><p><strong>LEARNING:</strong> Do not chase just one investor when raising capital; keep your options open. Time is money, especially for a startup with limited resources so use it wisely.</p><p><strong>&nbsp;</strong></p><p class="ql-align-center"><strong>&nbsp;“As an entrepreneur, you have to be the most optimistic person on the planet and believe that your startup is going to succeed.”</strong></p><p class="ql-align-center">Dror Tamir</p><p>&nbsp;</p><h2><strong>Worst investment ever</strong></h2><h3><strong>Raising capital for his startup</strong></h3><p>Dror is always looking for suitable investors, and in one of his previous rounds of raising capital, his company received a lot of interest from investors. One particular investor approached him and said they wanted to be the lead investor. From day one, they said they would invest 70% of the funds that Dror needed.</p><h3><strong>Opening up his company to strangers</strong></h3><p>Dror was excited about this opportunity. These were the guys that he wanted to work with. Dror discussed the valuation, terms, and plan with them, and then they went into due diligence, the longest due diligence he ever had. They did eight months of due diligence.</p><p>Part of the due diligence meant that Dror had to answer hundreds of questions of every aspect of the company. Another part of that due diligence included discussions with expe