Venture Capital or investors are not hard to find, but they are hard to close. First and foremost thing is that you have to have a working product or service and a proven market to attract them. The competition is getting more challenging day by day, but there are opportunities available if you are aware of the realities of venture capitalist’s priorities and what they are looking for in your start up.
The first thing to do to get Venture Capitalists consideration to get funded for your start up is to talk about your management team, because these are the people who will execute on the strategy and make the startup successful. The next thing is the momentum, the combination of your product design or service model, revenues, customers, pricing, a growing team and evolving market positioning. The VC’s want to know that you can actually sell your product or services to the people.
Venture Capitalists are always interested about investing on big markets with ambitious teams. So you have to show them the market opportunities with verifiable research and metrics. The money factor is also an important one for VC’s to decide to invest in your startup. So you have to be ready for this final step. In the beginning, as the markets goes they would like to own, about 20-25% of your startup company.
The other important points the VC’s are looking for in your startup are your resources, Implementation strategy, financial plan and Marketing plan. It’s always better to review your plans with your team and friends, before you present it to the VC’s or investors. So understanding these simple steps of financing a startup is critical to successfully funding your company.
-M Aslam Jeelani
Sr. Business Writer