I don't blame the entrepreneurs for this. This is a typical attitude of fund managers turned venture capitalists or investment bankers who often times try to shove down the entrepreneur's throat three times the amount of capital the venture actually needs. As mentioned in a previous article, having too much cash is in itself a handicap. A business plan has two aspects. Any venture should score high on both aspects.
Many business plans score high on the first aspect, that is the business proposition is great.
However, a close analysis of their revenues and cost streams may show that profitability is marginal to non-existent. In other cases the amount of capital needed is simply out of proportion with the profit level. Summary For a deal to have some longevity it needs to score high in all five areas. A deal that scores high in the customer problem area and low in the other areas will have a short life span. A deal that scores low in the customer problem area and high in the other areas has no life at all.