The difference between a great idea and an industry-changing business often comes down to funding. Many great concepts never make their way off of the paper that we outline them, leaving these ideas incomplete and their potential unfulfilled. While funding is often the largest hurdle for businesses and start-ups to overcome, it is also a hurdle that can be solved with the help of a venture capitalist.
Finding the right venture capitalist to invest in and help expand your business can feel like a challenge. To make this process a little easier, let’s outline each step you should take along the way.
1. Focus On Venture Capitalists That Fit YOU
First and foremost, many start-ups have the wrong approach when seeking funding for their business. Instead of mass mailing all of the venture capitalists you can find, focus instead on those that most accurately match your vision and style. This might require some time researching the different companies various VC firms have invested in before coming to your own decision.
Key Takeaway: Look at the resumes and profiles of venture capitalists that might fit your vision for your start-up. By assessing their profile and the companies that they’ve invested in, you’ll be able to see if they are a match for you.
2. Craft Your Elevator Pitch Immediately
You are selling not only your idea, but you are selling yourselves to the potential venture capitalists that you are meeting with. In order to make this meeting as effective and positive as possible, do your homework and prepare an elevator pitch at the earliest possible moment.
An elevator pitch is a short, optimized explanation of whatever solution your business endeavors to provide. This elevator pitch should be informative, quick, concise, and professional. Don’t over-explain your business and don’t try to sell every aspect of your company. Deliver the solution to a problem your VC might not even be aware of!
3. Do Your Digital Due Diligence
The internet may be getting older every single day, but that doesn’t mean there still aren’t exciting and innovative ways to use it to your advantage. In the olden days, finding a venture capitalist involved shaking plenty of hands while spending time on the road. Thanks to the web, we can do the vast majority of our research from the comfort of home, connecting with venture capitalists that might fit our vision.
To make the most of your efforts finding venture capitalists, consider bookmarking profiles like this one. Crunchbase is one of the most popular business platforms on the internet because it seamlessly connects companies, investors, and aspiring entrepreneurs in a field brimming with research. Take some time to explore these profiles and consider utilizing the Pro Profile for further research efforts.
There is far too much information readily available for start-ups to blindly plunge forward through their VC research phase. Use the tips we’ve outlined above with your own due diligence to set your company up for success today, tomorrow, and for years to come!