Wednesday 27 August 2014

Things to Remember While Venture Capital Raising Enough Is Often Never Enough for the Investors

Of all the types of startup funding methods, capital raising from the venture capitalists is definitely the toughest one. Right from the moment you think of raising venture capital, you have to start preparing for it. Trust these professional investors with the potential to take your business to the highest possible level are often extremely tough to convince.

So, as an entrepreneur, it becomes your responsibility to stretch your boundaries as much as you can to increase the value of your business and make it appealing in front of the investors. Here are some of the important things you need to remember while Venture Capital Raising in Singapore.
Choosing the right investor should be your primary target. It will simply be wastage of time if you run after the wrong investor, i.e. one who is not at all interested in investing in the industry you are dealing with. Go through their website properly before approaching them.

First meeting with an investor means the first impression that you are going to leave upon your investors. It should be formal in every aspect, but no need to narrate everything in the first meeting. This should be the day when you will only create curiosity in their mind and when you leave, make sure they eagerly look for another meeting with you. If they seem curious, it means they have found something valuable in your business.

You first pitch should reflect your business in a crystal clear way. You also need to realize that these guys are really busy and do not have much time to listen to long stories. So, make it crisp, clear and professional. In a few sentences, tell them about the whole concept.  Show them how big market you are targeting, how scalable it is and if you have tested your market traction with a group of beta customers, show them.

Prove how and why you are better than your competitors and why do you think customers will come to you. Explain your business model and also discuss about your management team – you can even introduce the team to the investors. Make sure you have smart, hardworking and committed members in your team.

Once you have found a right partner, try to maintain you dedication towards them as they have taken a huge risk by investing in your startup. Always inform them about any latest development or whatever success your company has achieved. This way, you will be able to retain their curiosity as well as trust in your business.

Try to make it easier for them as much as possible to know your business and your team. Encourage your team to act smart and behave properly in front of them. They should never regret their decision of investing in your startup. If it happens, they may feel it unnecessary to continue with your business.

These are some of the most important things that you should never forget while raising venture capital. If you are currently in search of a suitable investor, it would be a great idea if you can be a part of an intelligent network of buyers, sellers and investors. If the idea sounds appealing or you just want to gather some more information about venture capital raising, feel free to visit http://mergeralpha.com/

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