We have a great choice of funding companies at the end of this article, but give this article a quick read first.
There are millions of venture capitalists out there looking for ways to spend their money. Your challenge is to make them notice you and give you some funding.
Firstly, out of 100's of business plan submissions that venture capital lenders receive, they will only look at 2 or 3. So you must break through the "clutter" very quickly.
Remember this, venture capital lenders are looking for startup companies that will quickly place themselves within the top 1-2 companies in a particular market segment.
Here are 4 areas that venture capital lenders are looking for:
1) They are looking for entrepreneurs and startup companies that are focused on strong emerging trends. You might make the greatest Buggy whip in the world, but there is no market for it. A key area is in high tech markets, with broad appeal.
2) Capital lenders are looking for companies in their early stages, where the basic idea has been developed (with a business strategy). It is good to have a strong core team of individuals, and perhaps some success in raising your own capital from friends and family.
3) "Show me the money". You must have an aggressive, growth-oriented business plan. The investors want you to show them how they are going to receive a significant return on their invested money in the very near future.
4) "Know your business". Venture capital lenders love it when they see a bright, talented, experienced group of entrepreneurs who have a deep understanding of their market place and their product.
Start with this type of foundation and you are well on your way to finding some good funding from venture capital partners.
Funding: A guide to the best sources
