One consideration in venture capital fund raising might be to target specific venture partners you can work with and eschew the “big boy” firms. Your target firms should also be as closely related to your business as possible, and your communication and presentation should not appear amateurish. The more professional, the more probability there is for success. Entrepreneur wannabes interested in raising venture capital should know in advance, that the system is like, well, like the Free Masons; very secretive. They really do prefer to keep people in the dark, so to speak, about how all this VC stuff really works. The reasoning is simple enough. It benefits the venture capital company. Sort of like the Mafia thug who says: “When I want your advice, I’ll give it to you.”
In your VC fund raising approach, never start out asking for money. Suggest to them you’re interested in previewing this venture, and would like their advice, opinions, and insight. There is not a VC boss who would not be flattered to pass on his or her knowledge on the stepladder to success. Once you get your foot in the door and set up an initial meeting with a venture capital company, begin by emphasizing your accomplishments, paying particular attention to your specific long-term goals. But eschew taking a conceited attitude. Just sort of, well, gloss over expectations, except for what you’re sure your company can accomplish. You need to pretend you’re looking through the front window for what is up ahead, not in your rearview mirror for what you have passed and done. This is what is called the coy, “soft sell” approach. However, if you have already figured out that you can’t fund your deal by yourself, you should go ahead and toss the venture capital company a fast ball, and ask for the money in your initial meeting.
Many times entrepreneur wannabes sit and watch the clouds roll by, daydream about money, owning their own venture capital company, hiring people, all the new products they could develop, and start making millions of bucks. Their mantra being simple enough: start, grow, and make money. Following these three timeless basic suggestions, perhaps that dream will become a reality.
#1 – Think timing. Seek venture capital funds when you’re ready, not when you’re still dreaming about it. They don’t want ideas; they want to see limited risks for them.
#2 – Make sure what you have is what they‘re looking for. Most want fast-growing potential with an ROI within seven years.
#3 – Make sure you go after the right VC Company. They all differ in wants and needs.
Fundraising in itself is not the end of the road; it’s an opportunity to raise money via venture capital investors. Doing this will present the ability and opportunity to create a monolithic “monster” that can go public or sell, and allow you to pocket buckets full of those green pieces of paper with the pictures of dead presidents on the front.
Continue observing the venture capital investment trends from David Hand Crescent Point Singapore or read about Crescent Point Venture Capital news, the leading emerging markets investment management and financial advisory firm primarily targeting in the Asia-Pacific and Middle East regions.
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