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:
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.