What are the top 10 reasons why your business can't get funding?

Investors will invest when

1) Ideas + Investment ---> ROI (+ve)

2) Lower Risk

3) Sense of Professionalism and "Go-getter" attitude among initiators.

Feasibility of an idea is like forecast of revenues and organic growth.

Fundamental methods to carry out feasibility study with respect to Internal and External environment e.g. SWOT, Porter's Five Forces Model, etc. These methods include multiple parameters to find the depth of an idea.

Every start up needs a strong management team to make it. This is a large overhead and luring talented recruits may mean providing incentives like a share option. For this reason, investors may be chary about buying in, if they think the market potential is too small for them to make a lucrative exit.

I feel TRUST/BELIEFE and PAST BACKGROUND is the major parameters for Investors to walk away proper flight:

TRUST/BELIEF is mainly in Team and Team members and Confidence about functioning such organizations for Longer Durations, Recovering a Good ROI and IRR etc

Secondly, I feel Past background of Applicant makes a big Difference and is a major parameter for Selecting for Investment... If one already have a Self Business it will be easy for him and Investors may also be having a Feel Safe factor for there Investment and then negotiations may directly start on ROI and all instead of Typical WH Questions...

I feel they hardly give preference to Idea while major Preference is for rest of the External Environmental Factors as follows:

1. Market Size and Potential,

2. Number of players in Market

3. Barriers to Entry a particular segment

4. Target Consumers and there Behaviors

5. major competitors

etc etc etc...

I think it has to do more with marketing your idea properly to the potential customers.

as there are many businesses which are running there business in a very wrong platform this cause the lack in the funding 

For many business owners, the company they have built up is part of their lives. They are attached to their businesses emotionally and probably unwilling to sell up any time soon. Investors want their money back eventually — usually sooner rather than later — so they’ll walk away from business owners they think will find it hard to let go when the time comes to sell the company.

The Business Case should be drafted in such a manner that Investors should get attracted, Proper SWOT Analysis is required, Moreover to get funds , security of Principle along with handsome returns is also important

Advanced countries like USA gives lot of importance to this aspect

Business needs money in lakhs or crores depending upon the nature of business. Hence, any business has been financed either by the own contribution of the promoters in case of small business or by the banks/financial institutions in case of big business/private & public limited companies.

For business in large  scale, the promoters will not be in a position to invest the entire capital and so they need the help of investors or banks for the investment. So the financial institutions first see the security of their loans to the business people. That is how they are going to repay the loan amount with interest [ repaying capacity]

Banks are giving loans for meeting the working capital requirements under the system of hypothecation of plant & machinery, available raw materials, semi finished goods and finished goods. For raising funds for capital investment, the promoters have to submit collateral securities to the banks as security in lieu of availing the loan amount. The bankers will also look into the aspect of financial standing/creditability of the business people and the return on investment of business.

In case the business people are not able to meet the above conditions, it will be difficult for them to get funding.

Thanks Ms. Leena for the referral.

ANY INVESTOR WHETHER PRIVATE OR PUBLIC WILL ALWAYS BE VERY CAUTIOUS BEFORE FUNDING.A NEW ENTREPRENEUR,HOWEVER GOOD THE PROJECT MAY BE WILL ALWAYS FIND IT DIFFICULT TO CONVINCE THE INVESTOR.A PERSON ALREADY HAVING A RELATIONSHIP WITH THE INVESTOR WILL EASILY GET THE REQUIRED LEVEL OF FUNDS BECAUSE OF HIS CREDIBILITY,EARNED THRO PAST PERFORMANCE AND RELATIONSHIP.

Most PE/VC firms can hardly look beyond a year or so, then why is that they are always hoping atleast one in every 20 investment would turn out to be a Google. If you ask any business is worth funding, unless and otherwise the fundamentals of a business is itself wrong. See http://bit.ly/GYNf3 on the atleasts one of the fundamentals of a start up.