12/2/2021 Tip: 3 Key VC Criteria | Growthink

12/2/2021 Tip: 3 Key VC Criteria

Today’s Quote

“If the door to your dreams is locked, kick it open!”
~Kevin Jimeno

 

Today’s Tip

Venture capitalists don’t just invest in whatever companies they find personally interesting.  Each venture capital firm invests based on particular characteristics, including:

  • Market Sector: Many venture capital firms focus on specific sectors such as healthcare, information technology (IT), wireless technologies, etc. In most cases, even if you have a great company, if you fall outside of the VC’s sector preference, they’ll pass on the opportunity.
  • Stage Preference: VCs tend to focus on different stages of ventures. For instance, some VCs prefer early stage ventures where the risk is great, but so are the potential returns. Conversely, some VCs focus on providing capital to firms to bridge capital gaps before they go public.
  • Geographic Location: Most venture capital firms only invest within 100 to 200 miles of their office(s). By investing close to home, the firms are able to more actively get involved with and add value to their portfolio companies.

Virtually all VCs have websites that make this information readily available. Find investors that are a fit with your company for all three of these areas. For instance, if you are a pre-revenue software company based in Chicago, your best bet is to find a venture capital firm within 200 miles of Chicago that has experience funding pre-revenue software companies.

 

Today’s Resource

Forget Old School!

The “old-school” way of raising venture capital is DEAD! 

And that’s why I created this page for you… to show you how to do it right.

See the right way to raise venture capital <– 

There’s a common mistake almost every entrepreneur makes… and if you approach venture capitalists like most entrepreneurs, you’ll NEVER get funded. 

Here’s how to do it right <—

 

Trivia

Today’s Question: What was the only product ever promoted by Elvis Presley in a television commercial?

Previous Question: What is the full name of Barbie, the doll?

Previous Answer:  Barbie’s full name is Barbara Millicent Roberts. 

She is from Willows, Wisconsin and went to Willows High School. The creator of Barbie saw her daughter liked playing with paper dolls, so she decided to make a 3D version of them. 

She named these dolls after her daughter who inspired her to make them.
 

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