VC funding (or lack thereof) is what has pulled ahead Wannabe numerous start-ups with a brilliant idea. For the lucky few who are in the right place at the right time with the right idea, these investments come easy. Some might even received angel investment right off the bat. But many more keep knocking on the door for years without success.
No doubt luck involved, but uncertainty can be minimized with the preparation, the necessary data and know what to do and where to go. This is the core problem, because most people are clueless about finding venture capitalists. They also have no idea what kind of information or paperwork investor wants to see.
Apart from taking courses in entrepreneurship, the second best way to sort this out is to get some help. This requires a lawyer and banker right into the lair of the lion, which is usually either Silicon Valley or Boston, since this is where all the VC funds are based. The main goal here is to get introductions to venture capitalists through the aforementioned lawyer and banker.
There is no need to worry about how much this will cost, because their fat fees do not have to pay up front and there will be significant if the entrepreneur fails to secure funding. The important thing to worry about is the preparation necessary for the court. The first thing on your list should be the presentation, with slides explain the basic ideas, implementation of technology, business models, forecasts, cost, etc.
If the field work, it will probably be one meet with the entire board of the investment group or all partners . This is where the spade work to do, and they will ask for all kinds of documents – Keep, references, business reporting, regulatory compliance paperwork, etc. This is something best done with the help of a lawyer-banker Duo.
One question that needs some attention is the size of investment required and how much of the investor gets in return. Now there is no recipe to get this answer, but it needs to take into account the type and size of the boot, and projected figures for growth and income. This delicate negotiations is another thing that a lawyer can assist with.
The summary is here to hook VC is easy, at least in theory. Practically speaking, the entrepreneur needs to exude confidence in the concept and plan, and be able to make a compelling case for it. Of course, the real hard stuff comes much later, when investors have opened up their wallets and want to see it go as per plan.