| One of the most stressful and also chalenging stages | | | | major existing an also emerging competitors could be |
| of a business is probably that of raising startup | | | | interpreted by venture capitalists as an arrogant or |
| capital. After using your own savings, appealing to | | | | even ignorant attitude. |
| your family, friends and acquaintances you realize | | | | Forget that VCs Will Be Your Business Partners |
| that you still need money and banks will not be of | | | | Venture financing is not only a simple transaction, like |
| any help, as the risks are too high at this point. You | | | | taking a loan from the bank, it is much more than |
| decide to use a venture capital firms, angel investors | | | | that. The venture capital firm that will give you |
| and private equity funds directory and contact | | | | money will not only expect high returns from you. |
| business investors. Here are some mistakes you | | | | They will also ask for a seat in the board of |
| should avoid, unless you want to start a neverending | | | | directors, meaning that you will not make important |
| discouraging chase for capital. | | | | corporate decisions without asking for their advice. |
| Contact Everybody in Your Database | | | | Your relationship with the VCs should be based on |
| The first mistake is to try and contact as many | | | | transparency and mutual trust and they should be |
| investors in the database as your time allows you to | | | | open to offer their expertise any time it is necessary. |
| do, or even hire a person to deal with that. Acting in | | | | Don't Talk about Your Team |
| such an immature way starting from the assumption | | | | Although you are supposed to have a separate |
| that everybody will be interested in your innovative | | | | chapter in the business plan with a detailed |
| idea is a big mistake. Venture capitalists are | | | | description of your team, from managers to |
| specialized in funding companies in different industries, | | | | specialists, with their educational background and |
| for the reason that they need to understand those | | | | business experience, you may be carried away and |
| fields when they decide to invest. Search for VCs | | | | keep talking about your ideas only, about your |
| that have had similar companies in their portfolio. | | | | projections, plans and expectations. Your business |
| Consider only those that are geographically located | | | | goals are going to be accomplished with the help of |
| less than 100 miles away from your offices, so that | | | | this team, using their skills, ability to focus, adapt and |
| they can provide help and expertise as well. | | | | work together. |
| Quickly Write a Poor Business Plan | | | | Make a Spontaneous Presentation |
| Don't think writing a comprehensive business plan, | | | | In order to make a good impression and put your |
| that would have the size of a Final Diploma, would | | | | ideas forward, even if you have learnt your business |
| mean wasting time on somethink that nobody is | | | | plan by heart, you need to be a skilled presenter. |
| actually going to read. VCs are going to ask you a lot | | | | Make sure your speech is clear, you show confidence |
| of questions about different aspects of your | | | | and don't use excessive name-dropping. To be a |
| business and all the answers should be in your | | | | successful presenter you need to have a good |
| business plan. This will prove you have knowledge of | | | | executive summary, that would help you organize |
| the business you are in and what you are going to | | | | your ideas and venture capitalists understand the key |
| do, you are aware of your strengths and | | | | points and you are supposed to organize your |
| weaknesses, you know your customers' needs and | | | | speech and perform it before the pitch. Unpredictable |
| your own company's needs, you know exactly what | | | | questions may arise, but being prepared will only |
| amount of capital you have to be e provided with, | | | | make you feel safe and confident. |
| when and what for and you can make financial | | | | Bring Countless PowerPoint Slides |
| predictions as well. Moreover, this business plan will be | | | | Reading from the slides stuffed with text and |
| your guide along the development process, so you | | | | pictures will only make your audience lose temper or |
| will keep it updated, as the market is changing | | | | patience and finally get bored and not listen to you. |
| constantly. | | | | A good PowerPoint presentation should consist of no |
| Ignore Competition | | | | more than ten slides, each with the key words or |
| You are not alone on the market, however new | | | | main points of what you are going to say and it |
| your business idea may be. Your competitors could | | | | should not last more than twenty minutes. Your |
| have similar products or services, they could have | | | | slideshow is supposed to be a supplement, not do |
| similar technology that would make them able to | | | | the talking for you. |
| develop a product with the same features or that | | | | Pitching venture capitalists requires a lot of |
| would be able to satisfy the same needs of | | | | preparation, research, article reading, asking for |
| customers. Your competitors could be using more | | | | advice and all these can cause a lot of stress and |
| advertising channels and could have a better | | | | nervousness. But don't forget VCs are humans too |
| marketing strategy, so even if your product is | | | | and a bit of humour to spice things up is always |
| better, theirs is popular. Not having solid data about | | | | welcome. |