Tips and Tricks to Raising Venture Capital from the Pros
Raising venture capital can seem like a difficult, if not impossible task sometimes. In troubled economic climates raising venture capital can seem like an all out impossibility. Even if it appears it can be done there will likely be concessions that will have to be made. Well, those myths are why venture capital can be difficult to obtain. In fact, raising venture capital can be relatively painless if you simply follow a few of these simple tips:
1. Before you even begin the process find a good lawyer. A good lawyer is going to cost more than the bargain basement variety but their expertise will be invaluable. Look for a lawyer who has experience in venture capital, entrepreneurship and mergers & acquisitions. This is not the place to penny pinch. Finding a good lawyer will make the process much easier.
2. Personality and seeing eye-to-eye is important in venture capital deals. While the terms, conditions and firm are important it is also important to like the people you are working with. Before taking a dime from anyone make sure your business plans and mindset mesh well with the investor or investors. These venture capital investors will likely be with you for the long haul, so do make sure you like them.
3. Be informed before you head into VC meetings. This is important, because you’ll likely be surprised if you don’t go in their with current, market knowledge. The economic downturn has lowered valuations so venture capitalists will likely value your company as less valuable than you think. This is normal, don’t go in with inflated expectations and you wont’ be let down.
4. Do know what you are talking about. Do your research about the VCs you are meeting with, the meeting protocol and have all necessary answers about your business before hand. VCs are more likely to invest in a company with a solid, laid out business plan and knowledge of the market. Going in their with a lack of information will make VC meetings much more stressful.
5. Prepare a good pitch. If you’ve ever opened a newspaper you will notice you are likely to only read the first few lines before deciding if the article is interesting. It is the same in a venture capital meeting. The pitch is what VCs use to size you up and figure out if they are interested. You have 60 seconds to make a good impression. Focus on it and practice it hard before going into the meeting.
Now that you have the basics down you should have a much easier time raising venture capital. Follow these simply tips and you’ll be raising capital quickly and with easy. Happy entrepreneurial adventures!
Find out more stories of advanced venture capital topics from David Hand Crescent Point Singapore or visit Crescent Point Venture Capital news site, the leading emerging markets investment management and financial advisory firm primarily targeting in the Asia-Pacific and Middle East regions.
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