When your company is ready to move to the next level, securing business funding is often the key to success. Venture capital can provide much-needed infusions of cash and sometimes provide helpful mentoring advice, but it can also be hard to come by. Try the following 4 tips to land that venture capital financing you seek.
1. Make a Long List
Your chances of finding an interested venture capitalist can only go up the longer your list is of potential investors. Do not make the mistake of targeting just a few handpicked VCs; make a long list of those who might find your business intriguing and approach or contact them all. This will take time but it’s a strategy that is more likely to pay off.
2. Stay Local
Venture capitalists often prefer to work with businesses that are located in a fairly close area to them to minimize their travel and make it easier to have a real pulse on the company’s movements. While it may still be worth appealing to large national VCs, be sure to scour your state and region for venture capital that has local interests in mind.
3. Look for Industry-specific VCs
Your firm will also be more likely to find venture capital if you concentrate on approaching investors that specialize in your particular industry. There are VC groups specific to sectors like clean energy, security and defense, media, health care, and information technology to name a few. These groups will be more likely to be familiar with your market and why your business would be relevant and necessary on that scene.
4. Be Persistent
The process of finding venture capital investment for your business can be long and exhausting. Do not expect it to be quick and painless, but be prepared to put in plenty of work to attract valuable VCs. In the end, all of that will be worth it!