Ways your startup can find venture funding
You’ve to be fully aware that for each startup that gains needed venture capital, the majority of fundraising plans go south and outright succumb to failure. But the endeavor need not just be dependent on luck. Below are some steps you can take to earn trust and credibility from believing, would-be venture capitalists.
Firstly, you’ve to know which venture funding best fits your goal. Remember that expert venture capitalists are not interested in linear growth, expecting no less than a return that’s 10 times their initial capital below a span of seven years. You’ve to, therefore, be candid about your business objectives: build your plans around clear-cut tactics to achieve quick growth and present these convincingly as most VCs immediately recognize empty promises.
Introduce yourself properly and formally. It’s not like you can get investors to trust you just by sending them emails. That said, the best and most effective method of introduction is by via the investor’s portfolio’s founder, as this would have already earned the investor’s trust. You can also opt to be introduced by a client who genuinely believes in your product and has the credibility to convince VCs that your offering can change the industry.
Aside from the need to quickly get investors' attention, set clear expectations so that investors know exactly how you will manage the money you’re raising, what goals will be met in a single year, and hires you’d require. All in all, have a great narrative to build momentum from. With all this, you can now set a clear deadline for when the investment decision will be needed from the venture capitalist.
Scott Tominaga is Chief Operating Officer PartnersAdmin LLC. He has almost two decades of experience in the hedge fund and financial services industry. For more insights on the financial and alternative fund industry, visit this blog.
