“Logic will get you from A to B. Imagination will take you everywhere.”
~ Albert Einstein
Here are the 5 steps to raising venture capital:
- Develop a list of VC firms: Start by creating a list of venture capital firms.
- Narrow your list: Each venture capital firm invests based on particular characteristics (e.g., some only invest in software firms), so you need to make sure your list only includes VCs that are interested in your type of venture.
- Make sure the VC is active: Many VC firms that have websites aren’t active. That is, they aren’t making new investments. You don’t want to waste your time contacting and talking with these firms.
- Find the appropriate person to contact: This is critical. Venture capital firms are comprised of individual partners and associates. If you contact the wrong one, you’ll be dead in the water.
- Send the VC partner or associate a “teaser” email: You don’t want to send the VC a full business plan or executive summary initially. Rather, you need to send them a “teaser” email (just 5-8 bullets about your company and market) to see if they are interested.
Once the VC “bites” on your teaser email, the next step is generally to send them your business plan. Following that you’ll do an in-person presentation(s), receive and negotiate a term sheet, and then sign a formal agreement and receive your funding check.
The venture capital raising process is real work, but once you receive their multi-million check with which you can dramatically grow your company, you’ll agree it’s worth the effort.
How To Raise Millions in Venture Capital
Would millions in venture capital funding allow you to grow your business?
How to millions in venture capital <— Learn How
Since 1999, I’ve personally helped my clients raise millions in venture capital. And on this page, I walk you through the major steps you must take to successfully raise $1 million or more in venture funding, plus the biggest mistake to avoid.
Today’s Question: How long was the office lease that beer-maker Arthur Guinness signed when he launched his company?
Previous Question: How much was the initial funding invested in Dell Computers?
Nineteen year-old Michael Dell was able to launch Dell Computers with only $1,000.
Clearly, he could have achieved success faster with more money (and he did raise more money later). But Dell was able to bootstrap and effectively launch his company with little funding.
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