Use venture capital industry focus to your advantage

The industry focus of many venture capital firms is very narrow. Firms that specialize in healthcare may not handle technology. Some firms have an even tighter focus. For example, some prefer to fund healthcare device research and development, but not research for new medications.

I recommend: Narrow your list of potential venture capital companies by using the subscription based Galantes Directory or visiting vFinance.

Focus on the venture capital industry when developing your business plan

With the industry focus on venture capitalists, it is surprising to learn that many companies are under-prepared when approaching a venture capital firm.

I recommend: Learn what to expect by visiting How Venture Capital Works. If you do not have the time, or find the process intimidating, consider using a venture capital consultant, such as Venture Capital Consulting, to prepare a presentation for your company.

Determine what type of funding each venture capital company offers, and how it will meet your needs

There are different types of venture capital funding available. Many venture capital firms prefer to offer a limited type of funding. While the venture capital industry focus determines what firms are a good fit for your company, the stage of funding they offer is important as well. Funding is available for seed, start-up, first, second, third and bridge stages. Typically any funding after the bridge stage will prepare the company for an Initial Public Offering.

I recommend: Business Resource Software offers a searchable database of venture capital firms. Capital Vector offers an easy to search database that you can download to your computer.