Many people ask on the ways to find venture funding. Well, if you are wondering on how your startup can acquire venture capital, it almost definitely can’t. Venture capital is a rarified atmosphere of emerging businesses and high-end startups with experienced management teams, secret sauce, high potential growth, and much more.
People who don’t have track records do not get venture capital. Businesses that do not look like they can grow fast and be enormously big size do not get venture capital. Even service businesses do not get venture capital. Therefore, before you start looking for venture funding, you should understand first the difference between an angel investment and venture capital.
You have to take note that venture capital demands almost the same as angel investors do. Majority of venture capital likes to invest bigger amounts in late-stage startups.
Below are some of the tips for finding venture funding:
1. Never Do Anything in Bulk
Get rid of the email templates like plague. Never think that serious investors would read summary memos or watch the pitch, less read business plans, when it looks like it is being sent by bulk to different investor. This concept basically dates back in 1980s when some people imagined that the venture capital companies were looking at the business plans coming unsolicited. They were not, yet sometimes, they pretend they were.
2. Do Your Homework
Determine some venture capital firms that invest the amount you require in your industry, region, and at your development stage. Venture capital companies each have their own unique identities, interests, and personalities. They also have preferences regarding where they invest, what amounts, and at what stage. Majority of them have sites and most sites announce their preferences. They do not like to deal with those who are not in their category and do not know it. The reason behind it is that they actually expect you to know.
3. Have an Instant Summary and Good Tag Line
Begin with an elevator pitch and get every key point down, yet the theoretical sixty seconds of classic elevator pitch is a bit too much. You have to describe your business in 1 sentence or 2 and that sentence should be intriguing. People had success with some known business of new business area.
4. If Your Summary Memory or Summary Video Works, Consider Pitching
The pitch is basically the slide deck, yes, however that isn’t what matters. It is the venture capital companies chance to meet you and see your team as well as the story of your business. There are various things about pitches. But, never think that failure or success depends on the pitch because it does not. It depends on the credibility, story, and assessment of the venture capital companies for your future prospects.
5. Ready Your Business Plan
It will serve as your screenplay while your pitch will be the movie. Never do the plan too formal or too big because it isn’t going to last and must not be older than 2-4 weeks.
Conclusion
Never consider spending investment money before the check clears the bank. The deals fall through always. Aside from that, select an investor wisely.