Home > Startup > Startup Financing > Landing a Venture Capital Deal


Amy Gesenhues

Guide to Landing a Venture Capital Deal

Get your business plan and your management in order


Useful
5.8
out of 10

Add Your Comments
 
 
Email Guide to Landing a Venture Capital Deal to a friend
Save the Guide to Landing a Venture Capital Deal to My Work.com Favorites
Print the Guide to Landing a Venture Capital Deal
link to this page
Save to del.icio.us
digg it!


After a big boom and bust, venture capital funding is on the rise again. But today's VC investors want more solid information from the companies they choose to invest in than in the frenzied days of the Internet bubble. And remember that VC firms typically look to cash out in three to five years, particularly by seeing your company acquired or going public. Follow these guidelines to increase your chances of securing a venture capital deal:
  1. Create a high-level, comprehensive business plan.
  2. Find a venture capital firm that fits your company.
  3. Post your venture capital funding request online.

Action Steps
The best contacts and resources to help you get it done

Create a business plan


The more thorough and complete your business plan is, the better your chance of securing venture capital funding. VC's will be looking to see that you have a unique product in a growing market and that you can forecast high profit margins and high growth in sales.

I recommend: Use SmartOnline's Smart Business Plan software to write your business plan or contact VentureArchetypes to write your plan for you. You can also create your business plan using an outline from Venture Associates.

Find the right management team to run your business


You may have the greatest business idea in the history of the world, but that doesn't mean you know how to run a company. Venture capital investors want to know that the company they're investing in has the right people in charge. Recruiting qualified, experienced executives demonstrates that your business is set to succeed.

I recommend: Use ExecuNet or the dmoz Open Directory to recruit executive-level management professionals from a variety of industries.

Find the right VC firm


Venture capital firms tend to limit their investments to a few industries. Find a firm that will fit with your company's financial needs, growth strategies and culture.

I recommend: Use vFinance, Growthink Research or Capital Vector directories to find firms.

Let a VC firm find you online


The best way to get something is to ask for it. Posting your funding request online is a quick way to let investors find you. If you have a great idea with the right resources and a business plan to back it up, venture capital investors will be fighting to finance you.

I recommend: Post your funding request online at the Go Big Network or Business Plan Posting.

Tips & Tactics
Helpful advice for making the most of this Guide

  • VCs typically take preferred stock in your company and seats on your board. If you're not willing to give up some ownership or control, look elsewhere for investment.
  • If your business has been around awhile, get a private equity rating service to rate your business' value and what will be gained (or lost) from accepting venture capital funding.
  • Landing a venture capital deal could take as long as six to nine months.

The official source of Landing a Venture Capital Deal is
the Venture Capital Firms and Funds page at Business.com


Featured Vendors

Find an Investor
Need startup money? $500 million available only for innovative startups.
FundingUniverse.com

Need An Angel Investor Or Venture Capital? We Help From $400
Dedicated consultant raises capital for you. Start-ups OK. Angel investor and venture capital funding available here. BBB "A" rated. Contact us today!
www.Ethos360.com

Venture Capital Resource
Offers a venture capital directory on CD-ROM. Includes contact data for all active US venture capital firms in 90 industries.
www.capitalvector.com

Need Startup Capital?
Contact active investors. Register to call or email investors.
www.unsecuredline.com

Sign up for the What Works for Business weekly e-newsletter!
 Related Resources from Business.com Back to top 
 Recommended Solution Providers Back to top 

on-line marketplace that connects the startup and small business community

Venture capital research firm that offers investors, service providers, and entrepreneurs the most comprehensive, accurate, and timely information on the venture capital industry.

Portal where you can post a synopsis of your business idea, research lenders or investment banks, and get leads on accountants, lawyers, and others.

Comprehensive business funding directory.

Provides online services and tools to entrepreneurs, investors and service providers.

Offers access to venture capital sources, research databases and educational resources.

Offers a library of forms, agreements and checklists to assist in getting funding for your business.


 Best Sites to Learn MoreBack to top 

Articles about finding venture capital for business owners.

Resource center containing articles regarding small business finance.

Raising start-up capital how-to guide.

Articles that cover the basics about venture capital, angel financing, and funding your business with loans or equity.

NVCA's mission is to foster greater understanding of the importance of venture capital to the U.S. economy, and support entrepreneurial activity and innovation.

Links to hundreds of VC sites, angel networks and articles on business planning.


  Best Blogs and Forums Back to top 

Chat about funding opportunities for your business in this friendly forum.

Forum about venture capital, entrepreneurship, and all other issues related to starting and growing a business.

Discussion boards that cover starting a business and financing it.

Involves global trends on venture capital.

Blog for entrepreneurs looking for VC funding.

Devoted to posts on how to present your company.

Blog exclusively geared toward small business venture capital.


  CommentsBack to top 

Loading Comments...


Add Your Comments


Email Guide to Landing a Venture Capital Deal to a friend
Save the Guide to Landing a Venture Capital Deal to My Work.com Favorites
Print the Guide to Landing a Venture Capital Deal
link to this page
Save to del.icio.us
digg it!


Is any content on this page inappropriate? To let us know, please click here.



© 2009 Work.com, Inc. All Rights Reserved. Work.com is a property of Business.com.
Help | About Us | Site Map | Terms of Use | Privacy Policy | Community Policy | Taskonomy | Advertise | Contact Us | Local Business Directory | Work.com Feed