Common Tips to Follow Prior Getting Venture Capital Funding
Posted by Mudassar Ali on August 16th, 2018
For a startup business, there is a huge need for crowdfunding or other sorts of financial support that helps them build a strong base for the future and expand their business. Venture capital funding is a boon in this scenario that brings the small business grows their business and earns long-term returns.
Regarding investors, Ryan Van Wagenen of Cottonwood Heights states that there is a huge scope to invest in venture capital funding and make high return money. But for every startup, it’s really hard to find venture capital for investment and build their business strong financially. When it comes to searching for venture funding, there are some points that you should always keep in mind.
Venture capital is not Angel Funding:
Once you have initiated your startup, you look for an international financier who can help you in building a financial backup. Here comes the role of venture capital and angel investment. But if you think both the VC and angel investment are same, you are wrong. The investment from a well-established business is always termed as angel investment. In venture capital funding, the common investors invest in a startup through third-party firms.
Don’t Invest in Bulk:
Generally, small business owners always look for the maximum amount of funding from the investors. Because of which, they start targeting countless businesses at once. This is never a good practice to target multiple investors. Instead, you should build a business plan and pitch that can help you invest your time and efforts in a single investor and deliver the best of your potential. If your efforts work well, you will definitely earn good investors.
Run Detailed Research:
Research is one of the most important parts of investment that can help you find the right firm to make venture funding. There are numerous aspects of venture capital including unique identities, personalities, etc. that need to be examined before looking for your funding. Nowadays every venture capital has a website that can be examined to analyze the venture and their preferences.
Approach the VC firm only Once:
Ryan Van Wagenen always recommends approaching any venture capital only once. The venture capital firm will always revert you if your profile fits into their criteria. It’s never recommended to approach the firm again and again. There are different options including contact us form, switchboard, contact number, etc. However, you can increase your investment possibility if you are introduced with some of the existing partners of the firm.
Follow Proper Steps to Approach:
Being the Director at Global Private Equity, Ryan Van Wagenen always suggests the startup to take proper steps to approach the VC firm. You should start with a summary video or summary memo followed by the pitch that can explain your desire for investment. Your business plan must be unique that can compel the VC firm to invest in your business and build a supportive platform.
Ryan Van Wagenen always mentions that whether you invest in venture funding directly or through third-party investors, you should always research well to get big investors. You should also crosscheck the detailed information of every venture capital you are looking to invest and check you will earn a profit on them. In this proves, you should also be aware of fake firms that can drain your investment.
