Finding Venture Capital For A Startup Business

Venture capitalists are people willing to invest huge sums of money in a proposed or existing business in exchange of future profits and, in some cases, a share of interest in the business. If you believe acquiring venture capital is the best way to come up with funds for your business then here are a few tips to help you out.

Be Prepared
Venture capitalists are entrepreneurs. Theyíre willing to take reasonable risks for a business, but before they do that, they need to see that youíre completely devoted to the success of the project. Professionalism is a requirement with them, not an option. You need to prove to them that youíre taking the project seriously and to do that, youíll need to put your convictions in writing with a business plan.

Venture capitalists are not generally as soft-hearted as angel investors. They wonít like it if you waste their time. Never submit to them a less than stellar copy of your business plan. It must be polished to the hilt, clearly and concisely written, and it must be convincing at all costs.

Make sure your presentation is just as polished. You should have your presentation ready at least one month before your appointment with a venture capitalist. Invite friends and colleagues, hopefully those who are qualified to give you constructive criticism, to listen to your presentation so that youíll get used to making the presentation. Encourage them to ask questions and take note of how you answer them. The same questions could come up later on from your future business partners.

Be Confident
Venture capitalists are more likely to listen to and be impressed with what you have to say if you act and speak confidently. You are not proposing your business for no reason, are you? You believe in it, donít you? If so, speak and act like it.

Be prepared for their questions. They arenít just going to take your words at face value and hand over millions of dollars without asking anything. Theyíre going to fire one tough question after another and you have to be prepared for it.

Be Fair
No venture capitalist would risk their money for your business if youíre not prepared to offer reasonable terms and conditions for your proposed partnership. True enough, youíll be doing most of the work but theyíll also be putting up most of the money. Venture capitalists will find your proposal more attractive if you acknowledge the value of their contribution.

Ask Around
If youíve got all the documents ready then itís time to start looking for potential venture capitalists! Unfortunately, theyíre not something that you can look up in an online or telephone directory so youíll have to do it the old-fashioned way and ask around.

When asking for possible venture capitalists to contact, make sure youíre discreet and you donít come off as arrogant or desperate. Use your network to scour them out but donít let everything out in the bag; just give a hint here and there about what you intend to propose and venture capitalists will come sniffing sooner or later.

Be Sure
Now, if you and your future business partner have come to terms, make sure that you read the resulting contract several times before signing anything. Better yet, have your lawyer double check the fine print. This isnít a matter of trust but simply a wise precaution any sensible businessman would take. If nothingís amiss then congratulations! Youíve got venture capital for your business.




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