November 10, 2010
It is no secret among entrepreneurs that Venture Capital makes their ideas possible. However, the secrets to getting that venture capital are often left unknown to them. Mistakes when contacting Venture Capital Firms can be very costly.
Avoiding these 5 common mistakes will help to increase your chances of receiving the venture capital funding that you need to get your ideas off the ground and running.
1. Relying Too Much on The Idea – When a venture capital firm looks at your idea, they will make the decision on whether or not it will succeed. What these firms are looking for is that you have plans about growth that are realistic and you will need to show them those plans.
2. Not Being Clear When Explaining Your Opportunity – Venture capital firms are not going to waste their time trying to figure out the details of your opportunity. They will be much more willing to help with financing if your goals, plans, and growth opportunities are clear.
3. Lying About Credentials – There are people in ever venture capital firm that are paid to do extensive background checks on the entrepreneurs who are applying for financing. Don’t overstate. Make sure your information is accurate.
4. Mistakes or Errors in Your Plan – You must trust the venture capital firm you are seeking financing from enough to share all the key information about your plan. Trying to mislead them will only get you rejection.
5. Not Knowing Which VC Firms Finance in Your Industry – It is important to not spend your time cold calling venture capital firms that do not finance in your industry. This is a costly mistake that many entrepreneurs make. We recommend that you cold call and email venture capital firms that are relevant to your industry and the stage of your business.
The most common mistakes can be avoided by careful planning, editing, and a detailed business plan that lays out your opportunity for the venture capital firm of which you are trying to capture the attention.
VCgate offers you a complete investors database that you can customize a search specifically for the industry of your business opportunity. Once you have your business plan in place, you can let this database find you the investors that are interested in your business opportunity easily and effectively.
The new VCgate database gives you access to over 4,600 business investors worldwide. Moreover, it contains more than 15,000 Venture Capitalists, Angel investors and management team members, with their name, e-mail and phone number included. The fund size is also revealed, as well as the minimum and maximum amount of capital that each investor offers. Also, hard to find investors who don’t make their services public are found here. An unlimited number of searches is possible, so that you can customize your lists every time according to your funding needs. With one-click emailing you can contact investors from within the software.
All the best,
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