3 Things to Understand About Working with Venture Capital Firms

There are certain types of companies like technology startups and life science companies that venture capital firms (VC) seem to gravitate towards funding. However, you can still receive money from venture capital executives, even if you’re not in one of these fields.

Yes, a chunk of money to start or keep your company going is a wonderful thing to have; and, yes, it’s possible for you to charm a venture capital firm, (or ten), to gather the funds that you need. However, going from a “Please,” to a “Yes,” is a process.

Securing venture capital funding requires patience, passion and honesty. Fake tricks and gimmicks are not how to grow your business and they are not going to do you any favors with these companies. In fact, unless you are literally re-inventing the wheel, VC execs will look for authenticity from you. Though you, of course, have to have a good product that has promise, VC executives will also want to know you and trust you as a person, and as a professional.

You Have to Have Patience

For some reason, people suffer under the illusion that venture capital firms make quick decisions. They think the execs see a hot startup and jump on it immediately. This¬†can happen, but it rarely does. Most firms want to see that you are producing consistent results over time, in key areas. Go into your first meeting thinking that it’s a first meeting and that you might even have up to 12 months of meetings with this person before you receive funding.

You Have to Have Passion

Passion is essential when you’re working with venture capital firms. You have to love your product or believe deeply in what you’re trying to do. If you do not, it will show quickly and it will come across badly. As with any sales process, the customer is buying you as well as the product or service you are selling. If you come across as fake or desperate for money alone, it will show. You will describe your business in terms that you think the investor wants to hear and you will also not show that you have focus and that your company has a specific vision and path.

You Must Be Honest

Be honest about what you have to offer and about what others are saying about you. Also, don’t try to look like a jack of all trades. Most VC execs want to see that you’re good at what you do specifically anyway, so they know who they are doing business with.

Remember, running a business successfully does not need to be complicated.  Keep it simple!

For more valuable articles to help you successfully manage the challenges of growing your business profitably, please search our blog at our website www.portalcfo.com.

 

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