Every business idea deserves investment irrespective of how bizarre it may sound. There are small and large companies which are always hunting for a financial kick start. But some companies need Titanic size funding which can only be provided by Venture Capitalists.
These big financial institutions come with deep pockets and significant contacts in the business world. VC firms never deal with small companies but aid start-ups that can develop a mass-scale idea. Thus, it is necessary to know about their working style before planning for an appointment. Here’s what you need to do before talking with the big sharks of the investment world.
Develop a solid business plan
No matter how good a team is, it can never work in the absence of a strong business strategy. Even the greatest ideas are dusted if the team is not able to transform the idea into something big and profitable. Before talking about the plan, you must write down the company’s summary, industry overview, opportunities, and SWOT analysis. You should also add crucial factors like financial overview and future perspective for the upcoming five years.
Funding institutions will like to know about the basic details of your company anyway. A convincing strategy will compel them to initiate the funding process.
Be keen about online networking
The internet has become a vital source of capital in the last few years. Social media and websites like LinkedIn have provided a platform for new entrepreneurs. Here, they can find new employees and even deal with VC brokers.
You can learn about new companies while some of them would be interested in funding deserving ideas. All in all, make connections with people who might help you or who can set meetings with VC firms.
Don’t ignore crowdfunding
Crowdfunding has been a recent phenomenon in the business world. There are numerous websites that connect entrepreneurs with people who can fund their business. The method is especially popular in cryptocurrency IPO where various individuals fund a company in exchange for bragging rights and company merchandise.
They rely on the promises made by the company owners and hope to take benefits in the future. While using this method, you should concentrate on creating a full-proof marketing plan too.
Don’t ask for more than $1 million.
VC companies and small investors, both suffer loses as one invests endlessly in a single project, and the other is forced to leave good ideas due to less money. Thus, it is better to go for the middle path where you can enjoy the most success.
VC firms come with expanded knowledge and skills that help your business grow while smaller investors are not interested in tagging along with the owners. Depending on your choices, both can be used as an advantage. Keep the asking price less than $1 million to attract the highest number of investors and then chose the best.
VC funding is not a joke, and you should be serious enough to contact them for money. They can either help you with your idea or shatter your dreams in a single blow.