Are You What Venture Capitalists Are Looking For?
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What Do Venture Capitalists Look for?
While you're looking for the right investor for your company, venture capitalists are looking for the right company to invest in. Could it be you? Take a look at this checklist to see if you meet what most VCs are seeking.
- You have a track record. Venture capitalists look for established companies (or companies run by established experts in a given industry) that can prove they know what they're doing. They're not looking for the faint of heart and inexperienced.
- You need lots of money. If you need less than $250,000, look elsewhere for financing, because that's the funding point that venture capitalists start with. They're big players with big money to spend on the right company.
- Your company is growing. VCs don't fund companies without strong futures; how would they get their return on capital? Make sure you can prove that your business is viable and booming. It's the old adage of you need money to get money!
- You don't mind giving up some control. A venture capitalist will take part ownership of your company, and may require you to involve him in the management process. If you can't handle this, VC is not for you.
- You have an exit strategy. Venture capitalists look for companies with an aggressive exit strategy or who plan to do an IPO within 7 years.
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