4 Basic principles of venture capital fundraising

ByMarcus S Wong

When either established or aspiring entrepreneurs want to or need to raise money to start or expand their business background, many of them do not take the traditional route of applying for bank loans or lines of credit. Smart business travelers know that the largest amounts of liquid capital exist in a specialized part of the private sector. This specialized area is known as the venture capital market.

Business plan

No matter how much money a company wants to raise, either $ 50,000 or 50 million $, the first step for any chance of such acquisition of venture capital funds is to write a solid business plan. This plan should be between 25 to 50 pages, and should include sections such as the mission statement of the society, a biographical description of all the skills and experience of all of the directors of the company, the profit and loss account and balance sheets and a breakdown of specific expenditure, the total amount of the aggregate requested allocation. A great plan is a starting point and a direct and precise way to success of the company and the acquisition of funding adequate.

Be prepared to verbalize the funding application

In addition to plan business, directors of company seeking funding should practice the skills knowledge and oral to orally elucidate their applications for funding. They must be prepared to explain and justify the amount of the financing, they ask why it is necessary, what will be done specifically with the money and why the amount asked for is an appropriate amount. Venture capital and private equity groups, with astronomical sums of money to lend or invest, are unwilling to fund more than is necessary to start or expand any business entity. Thus, people who want the funding by the capitalists have really know their numbers inside and outside and be rational on their applications for funding.

Do never no for an answer

If the first venture capitalist turns down a businessman or a group of businessmen to a company, they should not despair. There are literally thousands of companies out there in America and highly reputable individual capitalists and financially resourceful one. If one of them says no, wanting businessmen of their funding should simply persevere and communicate with another and another and another. With enough persistence and intelligence behind their approaches, a businessman will certainly find the amount of funds it needs of a capital investor if his idea and the plan are able to be very profitable.

Always followed

To find venture capital investors, businessmen can either purchase print directory list them or search online for them in a similar way. These directories will describe them and their businesses and also to inform the businessman what business areas they are interested most wish to enter into funding agreements. In addition, always follow-up after an encounter with a specialist of venture capitalists. A letter of thanks for giving them their time and advice should always be sent, and an application for a subsequent meeting is always a great idea as well. This tenacity and determination will be manifest to the capitalist that businessman seeking his funding is very professional and serious about making his business venture as successful and as profitable as possible.

Marcus Wong writes articles on venture capital and equity venture capital Crescent Point. For more information, he suggested to see David hand Crescent Point of Singapore.