How to Raise Venture Capital
There are 4 simple steps to raising venture capital:
Step 1: Do Your Homework
Before you speak to venture capitalists, you need understand what VCs want and how the venture capital industry works. You need to do your homework. And if you want an investor to fund your company, you need to be able to answer these questions:
– Why are you raising venture capital (instead of another type of funding, like angel investment or a bank loan)?
– Exactly how much funding do you need?
– What would you do with the venture capital?
– What’s your valuation, and what percentage (equity) of your company will you give up for the investment?
And that’s just the first step…
Step 2: Find and Contact the RIGHT Investors
Next, you need to identify the right venture capitalists, so you can contact them and start lining up your meetings, and give your pitch.
In order to Get the best results, limit your search to firms near you who already invest in your type of business. Don’t waste your time reaching out to investors who don’t fit this profile. Quality is much more important than quantity.