By Christine Richardson
When you are seeking out financing for your company you need to make sure you're looking at all of the variables. Keep in mind that not all venture capital firms are equal, and you should seek out those that are interested in your company.
Fund Size. More likely than not, your company will require additional equity capital in the future. If a venture capitalist has a large fund available, they are very likely to be interested in making further investments in the future. Follow-on rounds can be much easier if you simply use the same investors.
The Location. Angel investors and Venture Capitalists have one thing in common -- they like to invest in companies that are close to them. This will allow them to interact easier with you as they will not need to worry about time zones or distance.
Other Investments. Before you contact your VC, take a look at their other investment projects. Have they invested in companies like yours? If so, then you may be able to form a network, eventually becoming a better option for additional investors down the line.
The Leaders. Something that many people tend to forget is the fact that Venture Capital firms are commercial entities but made up of ordinary people. Keep in mind that those people have different areas of expertise, and they will want to stick with those areas. You can learn more about yourself and your company if you stay with the right people.
Phase Selection. The stage of your company will have quite a bit to do with whether or not you are actually able to obtain funding. There are more than a few companies out there that prefer an organization with a decent operational level. It will take some searching, but you should be able to find a company to support you at your own phase.
Industry. If you are running a software company, it would be a bad idea to reach out to an investor that typically funds medical devices. While you might have an award winning idea, a venture capitalist will not invest in you if your idea is not 'up their alley', so to speak.
If you spend a little bit of time screening venture capitalists before contacting them, you'll save yourself some time and effort, and increase your chances of successful funding.
Fund Size. More likely than not, your company will require additional equity capital in the future. If a venture capitalist has a large fund available, they are very likely to be interested in making further investments in the future. Follow-on rounds can be much easier if you simply use the same investors.
The Location. Angel investors and Venture Capitalists have one thing in common -- they like to invest in companies that are close to them. This will allow them to interact easier with you as they will not need to worry about time zones or distance.
Other Investments. Before you contact your VC, take a look at their other investment projects. Have they invested in companies like yours? If so, then you may be able to form a network, eventually becoming a better option for additional investors down the line.
The Leaders. Something that many people tend to forget is the fact that Venture Capital firms are commercial entities but made up of ordinary people. Keep in mind that those people have different areas of expertise, and they will want to stick with those areas. You can learn more about yourself and your company if you stay with the right people.
Phase Selection. The stage of your company will have quite a bit to do with whether or not you are actually able to obtain funding. There are more than a few companies out there that prefer an organization with a decent operational level. It will take some searching, but you should be able to find a company to support you at your own phase.
Industry. If you are running a software company, it would be a bad idea to reach out to an investor that typically funds medical devices. While you might have an award winning idea, a venture capitalist will not invest in you if your idea is not 'up their alley', so to speak.
If you spend a little bit of time screening venture capitalists before contacting them, you'll save yourself some time and effort, and increase your chances of successful funding.
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