four Secrets to Raising Venture Capital

Every entrepreneur dreams of rocketing to success with the assistance of a million-dollar investment from a venture capital firm.

Just as athletes dream of Olympic Gold and climbers pine to scale Mt. Everest, entrepreneurs can forever strive to draw in venture capital dollars.

I've helped dozens of entrepreneurs raise a lot of bucks of venture capital and along the way I've discovered some secrets. Therefore if you discover yourself dreaming of venture capital, dream massive and follow these simple rules:

1. Spot the BIG Trends

Venture capitalists succeed by staying previous the curve. The character of their business demands that they invest in markets and industries that are rapidly expanding. If you're not in these days's hot markets, its unlikely you will get the eye of those skilled investors.

Positive, technology companies make smart venture investments, but those within the fastest-growing markets like mobile computing, different energy or biotechnology can have an even higher likelihood of attracting attention. Industries that are modish with VC amendment however, therefore be vigilant. Keep an eye out for the big trends that will shape your market and align your business to require advantage of those trends.

There's a bonus to the current strategy... Even if a venture fund never comes your way, this strategy can pay off in faster growth. Therefore keep the wind at your back and your eye on the horizon.

2. Target a BIG Market

Being part of a huge trend ought to point you toward some big market opportunities. To justify a VC investment you will would like to indicate lots of sales in an exceedingly short time. There's no manner to try to to that while not selling into a large, growing market.

How Huge? Most VC will tell you up front that a $one hundred million greenback market is not big enough to justify their investment. If you are trying to grow your business rapidly with venture cash, keep in mind this: it's easier to launch a huge ship in an exceedingly vast ocean than in a backyard swimming pool.

3. Create a BIG Distinction

The foremost "fundable" firms can not only be different from their competition, but they can additionally be fundamentally completely different types of businesses. Starbucks was in contrast to any low company the US had ever seen. Amazon, eBay and Netflix created basically new business models. And FedEx radically modified package delivery.

Every of those businesses took acquainted merchandise - occasional, books, movies, etc. - and made a massive distinction in how they were sold or delivered. Thus while consumer acceptance wasn't assured, each company captured the imagination of investors by unlocking new ways in which of trying at old businesses. You must do the same.

4. Assume BIG, however Begin Small

Rome wasn't designed during a day...and neither are relationships with investors. Begin your explore for an investor with just a few prospects. Learn everything you'll be able to regarding them. And then approach every one individually, with caution and respect.

Bear in mind, before they give you a big chunk of modification, busy investors can afford you merely a little amount of time. Be courteous by getting ready several bite-sized piecesof information about your company. (Drop me a line if you'd like to determine the one-page Investment Outline I wrote that raised more than $a pair of million!)

Begin with a brief "elevator pitch" - a thirty second sound bite regarding your market and the matter your company solves. If that gets their attention, follow-up with a little government summary - 1 or two pages that describes your strategic approach and also the key strengths of your company.

Finally, be ready to follow-up with a brief business plan - say twenty five pages of details regarding your market, management, and momentum - and a short PowerPoint presentation that encapsulates all the reasons why an investment in your company can make everybody rich.

I've seen these four rules used successfully over and over. After all, no successful entrepreneur I apprehend has ever raised venture capital without following all 4 of those rules.

ArticleSource: ArticlesAlley.com