Leading a start up can be very tricky. There’s no one way to do it, but there are many wrong ways. Too many founders start by trying to Ray trying to raise capital which almost always ends poorly.

The trick is to find ways to gradually build value and reduce the risk for future investors in your company. This means you need to have a sound understanding of how how value is determined, what activities create value, how risk is measured, and the activities that can reduce risk.

A leader who understands these elements may be able to find a sequence of activities that increases the value and reduces risk to the satisfaction of investors. This is one of the reasons that experienced CEOs often have an advantage.