Venture capitalists are people willing to invest huge sums of money in a proposed or existing business in exchange of future profits and, in some cases, a share of interest in the business. If you believe acquiring venture capital is the best way to come up with funds for your business then here are a few tips to help you out.
Venture capitalists are entrepreneurs. They’re willing to take reasonable risks for a business, but before they do that, they need to see that you’re completely devoted to the success of the project. Professionalism is a requirement with them, not an option. You need to prove to them that you’re taking the project seriously and to do that, you’ll need to put your convictions in writing with a business plan.
Venture capitalists are not generally as soft-hearted as angel investors. They won’t like it if you waste their time. Never submit to them a less than stellar copy of your business plan. It must be polished to the hilt, clearly and concisely written, and it must be convincing at all costs.
Make sure your presentation is just as polished. You should have your presentation ready at least one month before your appointment with a venture capitalist. Invite friends and colleagues, hopefully those who are qualified to give you constructive criticism, to listen to your presentation so that you’ll get used to making the presentation. Encourage them to ask questions and take note of how you answer them. The same questions could come up later on from your future business partners.