How to Find the Right Venture Capital Fund for Your Business
Are you starting a business and looking for sources of capital? Then you can try looking into getting offers from venture capitalist investors from firms like Clean Venture Fund! However, getting a good offer from suitable venture capitalists will require deep research and preparation. You will be able to get meetings with venture capitalists only if you have everything prepared for and when you have a list of firms aligned with your values and business goals.
So how can you find the right venture capital fund firm for your business? Here are some tips you can follow.
- Find firms investing in companies similar to yours
Do your research and find venture capitalists that are interested in the deal you plan to offer, in terms of the product or service and industry your business is in.
Find firms that have a good track record of investing in the industry you are in and those that have funded companies like yours in terms of the product or service focus and the revenue growth.
There are many ways you can search for firms, with various websites offering data on venture capital firms and related industries.
- The firm should invest in stages of funding you need
Ask yourself: What stage of financing is your business in right now?
As you narrow down your list of venture capitalists, make sure that they are pursuing deals that are in your stage, too.
Venture capital firms would share their investment criteria on their official website. For instance, you can find firms that focus on mature software companies, while others are looking into startup businesses from the same industry. If a venture capitalist is looking for established companies while you are still starting out, leave them out of your list.
- What are the firm’s previous deals?
As you look for good venture capitalists, look into their recent and previous deals. You can find them online as well, with many firms listing their past deals publicly.
Deepen your research by looking into the businesses the venture capitalists funded and see how they are doing now. this will help you see if your business will fit their prototype.
- Where are they from?
Look into the location of the venture capital firm and who they invest in. some firms would only invest in their local area, while others invest away from their city or state.
Also, take note that some regions would receive more venture capital funding compared to others. For instance, over 80% of the USA’s venture capital investment would go to five metro cities, which are Boston, New York, Los Angeles, San Jose, and San Francisco!
Don’t let this discourage you though, as more firms are willing to invest outside those regions and their local area. That said, you’ll get more attention from local firms.
Wrapping It Up
Once you have done your research and collected your list of possible venture capitalists to reach out to, set up those meetings, and give your A-game!