Entrepreneurs that are able to receive venture funds for their startup business are usually few and far between. Usually, only a small amount of companies will get this type of funding in any given year.
While there is exclusivity that comes along with getting venture funds, the good news is that social standing and wealth don’t really mean much to the venture capitalists. They will usually open their doors and their pocketbooks to the entrepreneurs that can persuade them that their business idea will make a significant amount of money and provide them with a good return on their investment.
Selection for businesses that will receive these funds is usually comparable to the survival of the fittest. Seeking venture funding is not something that should be taken lightly. Venture funds will usually want to have references before they will even give you the time of day.
Venture funds get many business plans in any given week. The best way for them to narrow down the candidates is to look for the entrepreneurs that will be persistent in their endeavors. They realize that the most successful entrepreneurs will have a lot of great problem solving skills. Finding a good reference for an introduction to the venture capitalists is just a small challenge when you compare it to the challenges that the business may face down the road. Having a good network can help to add to the success rate for the company.
The good news is that most of the venture funds will accept referrals from many sources. The best references will come from angel investors, investment bankers, and capital firms that are well respected and well known.
How can you network to find the venture funding that you need? Here is a way that you can do it, and save some time too:
- Read the venture fund’s website with great care. You will want to make sure that you can identify the people who will be evaluating the opportunities within your industry. Pay close attention to their portfolio and learn more about their board of directors.
- You will find that most of these websites will offer a link to the companies on their portfolio. You can use these links to help you make some great connections. Contact the owner of a portfolio company and discuss your needs with them. Most of them have a lot of contact with the investors.
- Reach out and ask for a telephone conference. Discuss with them that you are in the market for venture financing and that you want to learn more about their experiences. They will usually be open to discussing this with you.
The overall goal should be to leave a good impression with the venture capitalists. You don’t want to oversell what you have to offer. You just need to have a clear vision and be willing to network and do some legwork in order to get the funding that you desire.