Swimming in the shark tank.

• Author: Gravagna, Nicole
• Position: Business & Finance - Venture capital

YOU MAY NOT have snagged a spot on TV's "Shark Tank," but you have managed to get the attention of well-established venture capitalists. You finally are meeting them face-to-face, and everything seems to be going great; then disaster strikes. You present your estimate for your company's projected earnings and you see the VCs' faces drop. You find out later they thought it was unrealistic, which made them worry you did not have a handle on other aspects of the business--or maybe your projected earnings were reasonable, but your product demo went horribly wrong; or maybe you cannot even get your foot in the door because potential VCs keep telling you they already have heard about other businesses with the same concept as yours. You have spent long, arduous hours working on your business, and now it may seem that it was all for nothing.

If you are having trouble navigating the mystical world of venture capital, you are in good company. Venture capital often is misunderstood and can feel like a big cloaked, black box to many people, but getting an understanding of the basics will help demystify the whole process.

Of course, nobody is perfect, but when you are seeking venture capital, some mistakes, more than others, can cost you the deal. Below are some of the most damaging miscues you can make and ways to avoid them--or overcome them if they do occur.

Being uncoachable. Growing a company from a team of one or two into a thriving business is quite difficult, but you will learn a ton along the way. Being coachable means having a personality that allows you to say, "I stand corrected." In other words, you can take criticism, constructive or otherwise, and use it or disregard it, while staying positive throughout. Strive to be coachable, especially if that wait is not one you possess naturally.

Having a critic. You cannot do a lot when someone does not like you or your company, but be warned, having someone badmouth your deal, even falsely, can ruin the mood around your fundraising campaign very quickly. For instance, in an angel meeting of 25 people, if one angel says something less than positive about your deal, the excitement drops, and the deal can die right there on the boardroom table. If a VC asks his advisors what they think of your deal and they dislike it, it is dead. The best way to avoid this problem is to make friends and do not make waves for any reason while you are fundraising.

Quoting an inflated valuation. This probably is the...