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4 Ways to Get Venture Capital Fast

Successful acquisition of funding from venture capital (VC) partnerships requires a carefully planned, well-executed marketing campaign. The attractiveness of  the business is the sum of many factors including revenue potential, intellectual property assets, time-to-milestones, existing competition, ease of entry, quality of management, and the perceived interest in the startup’s work by the big businesses in the sector.

Venture capital investment is one of the few ways to get large scale funding for a startup company. Even the most seasoned teams with the soundest of business plans need to play their game smartly to attract venture capital firms

Venture capitalists view hundreds of business plans every year. The business plan must therefore convince the venture capitalist that the company and the management team have the ability to achieve the goals of the company within the specified time. Venture capital firms invest in early stage, and are ready to take a risk by funding a new business. As they are in the business of taking risk and investing in small business they make a detailed study of several hundreds or thousands of business plans before they plan to invest in the startup

So how do you get the attention of the VC. Here are some things to keep in mind when positioning your company to attract while pitching in front of the VC.

Size of the business does matter!!
This means that your company needs to generate larger revenue and profits because investors are looking for larger returns on their investments. This can usually only happen if the market is sizeable. If the market size is in billions than though you may attract a small market share to start of with, the potential to grow bigger in future attracts a lot of attention.

Blow your own horn
Having experience running start-up companies in the past, having experience in the industry, and being able to furnish references that can speak about the accomplishments and abilities of the entrepreneur are highly regarded.

 Keep it simple
The entrepreneur should start simple by preparing a concise two-page executive summary that speaks to the company’s core value and market potential. In addition, business attributes need to be articulated in a way that investors can understand.  If an investor is interested they will inevitably ask for more detail later on.

Have strong follow-up materials
Apart from the two page executive summary. The entrepreneur must be prepared with other supporting material to provide more details on the business. Thus if the VC gets interested and queries for more material to study or share with his team this is the best follow-up material to share.

Make sure you can show as well as tell
VC’s want to see you have a saleable product or service. Entrepreneur should ensure that they have a sample or finished prototype to showcase or demonstrate in a meeting. Having something that the VC's can touch and feel, goes a long way in getting them onboard.  In addition, investors like to see that the business already has customers and sales.  This provides credibility to the product or service the business is providing

Putting together a short and innovative executive summary, strong and clear follow-up materials, an effective management team, a product sample and customers already on board, will help to ensure that each VC contact is a meaningful one.

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