Every entrepreneur hopes that their start-up will be funded, but the truth is that only one percent of business proposals are ever selected for start-up funding. Why is this number so low? It’s not because there are lots of worthwhile proposals and the investors are choosing the crème of the crop. The reality is most business proposals are junk propositions, not worth the disk space they take up.
The most obvious rejection is a proposal based upon nothing than an idea. Investors want proof of concept. That’s not a prototype of the gismo; it’s the proof of a working business model – and this comes down to revenue, customers, and a product. Investors don’t want entrepreneurs to experiment with their money. They want evidence the business is viable.
Source: https://www.entrepreneurshipsecret.com/getting-your-start-up-funded/