Pursuing Venture Capital

Overview: As an entrepreneur seeking venture capital, a person, at the most fundamental level is treated as a seller. He is selling the business idea and the ability to execute on that idea. Securing the funding one needs, is a matter of taking specific steps. One of the biggest challenges entrepreneurs face when pursuing funding is gaining access to venture capitalists. Submitting the business plan is not as simple as shooting off a few dozen e-mails. In most situations, it is crucial that one begin by networking with the right people. A good executive summary includes an overview of the company's goals, the market one will be targeting, the competitive advantage the company has, the people involved in the business, the projected timeline, and financial projections and cash requirements. Selling the ideas to a virtual stranger is not exactly comfortable, but it is crucial that one explain the business model thoroughly and passionately. The financial needs are another important element of the plan. It is essential that the venture capitalist know how much money is required to fund the project to self-sufficiency, which is the ultimate goal. One should also align those needs with timing goals and valuation expectations. The financial needs should be clearly laid out on a year-by-year basis. When approaching venture capitalists, one need to demonstrate the passion and dedication to the venture that one undoubtedly feel.

(Is this item miscategorized? Does it need more tags? Let us know.)

Format: HTML | Date: Jan 2003 | Pages: 1