In the five-step process for going after Venture Capitalist funding, the logical first step is to Prepare, which I covered in my previous article.
Today’s blog post is going to cover step two of the five steps, and that is: Find the Right VC.
FIND THE RIGHT VC –
As you’ve been thinking about pursuing Venture Capitalist funds, you may have been spending a lot of time ruminating on how to make sure you are attractive to them. But you should also be looking at whether the VC or VC Fund is the right fit for you and your business.
You need to know that all Venture Capitalists are not created equal. The quality Venture Capitalists should not only be ready to provide you monetary support, but also support of a “non-monetary” kind. You want to find investors who are looking to collaborate with you and give you support on a whole new level. Ideally, they will fill in the gaps in your foundation so that the potential that your company has is maximized, helping to lift your profitability levels to where they need to be.
This “non-monetary” support can come in the form of:
- Operational Experience
- Hiring Contacts
- Service Provider Contracts (i.e. a team to help with your website)
- Profiles and Public Relations
- Exit Optimization – preparing for a buy-out situation right from the start; you should know your exit strategy (are you looking for an IPO, overall buy-out, to leave a legacy for your family?)
- Experience Throughout the Process (as I’ve said…collaboration)
Once you feel as though you’ve homed in on the Venture Capitalist (Fund) that is the best fit for you and your company, it’s time to move on to Step 3 in the process, which is to create a Targeted Approach. Funding your business can’t be left to chance at any point in the process, so my next blog post will address how to work through this next step.