The Basics of Obtaining Venture Capital

A company may have a great product or an idea, but it may not have the funds it needs to grow. Smaller amounts may be able to be procured from an angel investor or even friends or family. However, larger amounts may require the help of a venture capitalist. In this situation a company needs to have a plan of action.

Ideally the company should already exist in some form. If the company is already showing a profit, that is even better. Having previous success highly increases the possibility of an investor putting more money into the business. Whether or not the company has already gotten off the ground, a business plan is essential. Lengthy research must be done, but this information should be easily understandable by anyone. This is especially important if the company is technology based.

One of the most important steps of acquiring funds from venture capital sources is researching the sources themselves. Knowing that a venture capitalist has already invested in a certain area can be helpful and increase the likelihood of a partnership if the company is an expert in that field. This process can be helped with the Internet, including social media. The popular sites can help a start-up find an investor that matches their area of expertise. If a large amount of capital is needed it is a good idea to make requests of multiple investors. If several million dollars are required, it is best to look into a collection of sources.

If possible a company representative should get to know these potential investors. A personal connection can go a long way towards building a partnership. If an investor feels that he or she knows someone from the company, the likelihood of an investment may rise.

Even if a personal connection is not made, a good presentation can be what is needed to procure funding. A thorough, professional Power Point pitch can convince a backer that a serious investment would be a good idea. This presentation should include information such as the market competition, market size, the previously mentioned business model, and company goals. It is very important for the presenter to remain positive. A good attitude can help to persuade a potential partner. A presenter should also be prepared to answer any question regarding the company, keeping this simple inquiry in mind: “why should I put my money into your company?”

Continue observing the venture capital investment trends from David Hand Crescent Point Singapore or read about Crescent Point Facebook Venture Capital news, the leading emerging markets investment management and financial advisory firm primarily targeting in the Asia-Pacific and Middle East regions.