mardi 9 janvier 2018

Tips From Experts To Entrepreneurs Trying To Secure Venture Capital Funding

By Donna Hayes


If you are an entrepreneur whose business took off like a bullet as soon as you started it, you probably want to grow it as quickly as possible, and that takes capital. It can be difficult to get traditional financing without tangible assets, and an angel investor may not have the kind of money you need. At this point, what you need is venture capital funding.

Experts say that entrepreneurs who don't understand the difference between a venture capitalist and an angel investor, are not going to be of interest to a high stakes investor. Entrepreneurs starting a small business might find angels among their friends and family. These are people willing to invest money with or without some ownership in the company. Businesses, like those in the biotech or software industry, which tend to be high risk with high return potential, need another type of investor.

These individuals and firms operate at the highest levels. It won't be easy to convince them that the value you place on your company is realistic or that the company will continue to grow at impressive rates. You will have to do plenty of research to find the firms that invest money in the type of business you run and are willing to offer you the kind of sums you need for expansion.

Not matter where you go on the internet, you will find questionable companies offering quick solutions to difficult problems. You might come across one that offers proven leads with private emails and phone numbers. They may be selling databases guaranteed to get you in the door of a leading investment firm. As always, if it seems too good to be true, it certainly is.

Trying to create your own shortcuts won't be successful either. Mass emailing investors is a waste of time. They see these kinds of tactics all the time and aren't fooled by them. You never know when someone you contacted this way might have been interested in your business plan if your approach had been smarter. Instead you need to narrow the field of potential investors and go after them individually.

Once you have narrowed the field, you have to make a plan to approach them. Finding out as much as possible about them will help. You may know someone who is in the same alumni association for instance. You should contact anyone who worked closely with the investor on a similar project. You could even attend an event where the investor is speaking and try to introduce yourself once the event is concluded.

You may only have a few seconds to catch the attention of a busy investor. They see proposals all the time. You should have an intriguing tag line for your email introduction and a quick video that sums up your vision. If that gets you in the door, you have one last chance to impress with your pitch.

Successful businesses often start with a little idea and smart marketing. Once it takes off, an entrepreneur needs sufficient capital to keep it on its trajectory. There are professionals willing to invest big money on the calculated risk they will get a big return.




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