If you are one of the thousands of individuals planning to launch a business this year, then you may be looking for funding options that suit your needs. There are several different avenues to choose from when it comes to obtaining startup funding; however, one that may prove useful is venture capital. This type of funding can be especially helpful if your startup includes the use of some new technology or invention. If you believe venture capital funding is right for your business, there are a few ways to find funding sources that could yield positive results.
1. Research Before You Pitch
Venture capital is a rarified type of funding, so before you send pitches out to companies that are known for investing, it is wise to put some time into research first. Find funding companies in your city or state, look into the types of startups they have invested in recently, and note how much capital they typically invest in a project. The more you know about a venture funding firm, the more confident you might feel when the time comes to make contact.
As you research, remember to read a venture company’s website carefully, as many list their startup preferences and limitations there. Learning this information can be a vital step in obtaining funding, as approaching firms that do not offer to fund your startup niche will likely make you appear grossly uninformed.
2. Fine-Tune Your Approach
Once you have a few venture firms in your sights and you know your startup suits their funding style, it is time to plan an approach. Most companies have submission forms or inquiry email addresses listed on their websites, and while these can help you get a foot in the door, planning a more personal approach can improve your chances of gaining funding.
Using social and network connections may help you with securing a meeting, an introduction, or the chance to pitch your startup idea to a key individual. Be patient with making your approach and do not be afraid to reach out to colleagues and peers if you believe they might be able to help.
3. Perfect Your Summary Pitch
If you do score a quick meeting or are introduced to a venture capital manager, being prepared to discuss your startup or invention can mean the difference between catching his or her attention or falling flat. Preparing an elevator pitch can help you feel confident when these moments crop up, especially if an impromptu meeting should occur.
As you craft your pitch, remember to keep it short yet dynamic. It should be no longer than 60 seconds; however, if you can boil your idea down to one or two sentences, this could be even more useful. Of course, it’s good to keep it simple, but you still need to focus on including all of the relevant information. To learn more about some of the essential things to mention in a business pitch, visit https://earlygrowthfinancialservices.com/9-essentials-to-include-in-your-startup-pitch/. Hopefully, that will help you to create an amazing pitch. Remember to arrange for a follow-up meeting or email exchange once you have made your pitch successfully.
4. Invest in a Pitch Video
Once your initial pitch has generated interest, the next step you might take is to create a pitch video. This is much like your previous introduction, only with visual elements that help make your ideas pop. It is a good idea to keep your link secure, as posting it publicly could backfire or result in your ideas getting stolen before you can fully realize them.
Your pitch video can be the doorway to a meeting with a venture firm, so prepare it early and take the time to perfect it so you have it ready if an opportunity should arise. While a video might require a bit of time and money, it can have more of an impact than an email.
5. Review Your Business Plan
If you are invited to meet with venture fund investors, taking time to review and tweak your business plan can be an important step in the funding process. Consider the type of firm you are meeting with and look into their funding history.
While you likely cannot mold your business plan to meet the specific funding habits of a firm, understanding their past investment habits may help you gain insight into which projects most interest them. For example, Chris Sacca, head of Lowercase Capital, invested heavily in projects that focused on technology before turning his attention to philanthropic causes, such as clean water projects and those that address climate change. Understanding a firm’s interests may help you revise your business plan in a way that can improve your chances of obtaining funding.
6. Be Patient
No startup receives funding overnight, as most need to gain steam before they truly take off. You may run into problems and setbacks along the way, but it is important to remember that launching a startup is a journey. Be patient, prepare for problems or roadblocks, and do not give up at the first sign of trouble. Many of today’s most popular and profitable companies experienced some type of failure before finding their niche, and understanding this can give you the strength to overcome any obstacle.
Finding venture capital funding for your startup can be a considerable challenge. However, if you understand the basics and prepare properly, you can open many doors to success.