An effective way to get the required venture capital is to sell your business to venture capital [VC] companies. But of course, you should never return empty-handed. Remember that venture capital firms must first assess the viability of your business based on your business plan and then evaluate it from your business plan. More importantly, if VCS sees these four important qualities in your business, it is more likely to work with you: disruptive technology, rapid growth potential, a comprehensive business model, and the best performing management team.
Assuming you have managed to meet these four eligibility criteria, your next task is to plan the negotiation process between your company and the venture capital firm. Present your business plan and pay more attention to the generation of profits. Also remember that if you want to share a pie with them - or part of your equity, the venture capital firm will only give you that venture capital fund. Therefore, you must be alert to the terms and conditions proposed by the venture capital firm, which may affect your long-term control of your business.
The rules for venture capital are simple: if you accept our offer, you can own the venture capital fund. Your goal should also be simple: receive a good offer. To achieve this goal, here are some important things you need to prepare.
Write your business plan.
Entrepreneurship is difficult, but so is the business plan. All transactions, events, forecasts, assumptions and SWOTs for your business, you need to write them in such a way as to convince venture capital firms to raise funds. Venture capital hopes that their funds will double in three to seven years, triple or more. To understand this, you must indicate in your financial projections that you can break even at least in the first or second year. The rest of the business plan proves that your business is worth investing.
Demonstrate your capital expenditure plan and its return on investment [ROI].
Although these money issues have been discussed in the business plan, venture capital firms want to hear you present the same facts and figures in a ten-minute commercial campaign. Looking forward to thoughtful questions such as "Why is the return on investment for three years, why not two years?" or when they tell you "you are asking too much [or too little]", be prepared to give the best Explanation. "If you want to get this venture, you have to invest boldly.
Focus on your business growth so they can find you.
Venture capital is a big industry. Venture capital funds are raised by venture capital firms of wealthy individuals, companies and private investors. Today, the main players in this market will not stop looking for startups and small businesses that can give them high returns. If they think your business is selling very high, they will provide you with a venture capital fund. So the idea here is this: Make your business shine so that VC can easily find and support you.
Sell your business with confidence.
Real entrepreneurs know their careers better than anyone else. Whether you are a start-up or a company that is preparing to launch an IPO next month, you can get this venture if you sell your business with a high level of entrepreneurial skills. Once you are in front of the VC, treat it as your first and last one. Therefore, do your best to get the best risk investment.
Orignal From: How do you get venture capital?
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