Finding Business Partners for your Venture
You may have a great idea, a new technology or revolutionary service will change the world. You've built a strong management team (or planning to build) and now you need a partner to fund your venture and take the next steps forward.
You're in luck.' Many Investors today are looking to fund projects that have both a proven management team and/or growth potential. In fact, there are over 5,100 venture capital and private equity investors worldwide that have funded ventures.'
For example, on March 2009, August Capital, a 14-year old Venture Capital firm closed August Capital V, a $650 Million Fund. Those funds are now available to new ventures. August Capital focuses on early-stage computer software and hardware startups in addition to buy-outs, spinouts, PIPEs, and private investment in public equity transactions.' Until the end of March 2009, August Capital already made four investments out of the new August Capital V, $650 Million Fund, and look forward to continuing to invest in great entrepreneurs.
August Capital is one of many.' Venture capitalists have funded in excess of $3 TRILLION dollars toward new venture funds. And, Venture Capital firms are looking for good solid investments to deliver consistent positive returns.
So, how do you find the right business partner for your venture?
While some venture capitalists will come to you, you will get greater results if you search for them. In some instances, you may need to find a VC firm whose mission closely matches yours. Leading venture capital firm Sigma Partners, for example, concentrates its efforts on early stage venture capital development.' Some VC firms like Accel Partners, however, only focus on specific industry sectors.
In other situations, you may be seeking a VC firm that provides your business entity with additional experience and capabilities not currently at your fingertips.' You will need to determine which VC firms provide what.
Quality venture capital and private equity investors research is essential.
While it may feel like looking for a needle in a haystack, there are some useful tools and software directories available to help minimize the legwork in researching your top potential investors.
VCgate's Venture Capital Funds Directory, for example not only provides up-to-date information on investors but also allows you to search for specific venture capitalists.' Instead of cumbersome manual legwork, the Venture Capital Funds Directory finds you up-to-date information at the touch of a button and allows you to e-mail your potential funders from within the program itself.