How Do I Find Venture Capital Investments For My Business?

From Silicon Valley startups to expanding national businesses, venture capitalists (VCs) have paved the way for financial security and innovation for companies in nearly every industry. As private equity investors, venture capitalist firms consolidate funds and look to invest in young companies with the potential for expansive growth.

If you are asking, “How do I find venture capital for my business?” read on to better understand the nuances involved and attain funding.

From financial reviews to due diligence, we will explore the VC partnership process and the expectations involved to prepare you for connecting with the ideal firm for your business.

Establish Your Viability

Before embarking on your journey toward venture capital financing, you need to have a clear vision of your business and your potential for future success. 

Venture capitalists do not typically invest in a business until they are commercially viable. Instead, they look to elevate expanding companies with capital infusions and create a formal investment partnership that provides a considerable rate of return (usually via equity, with percentages based on their investment’s amount and risk).

To establish your business’ viability and value, ensure the following factors are firmly in place: 

• Team and roles – Early startups are often flexible and informal. As your business begins the process of seeking venture capital, it is necessary to formalize your operating structure and the individual roles within your team—creating a logical chain of command and responsibility. Additionally, VC firms expect qualified and experienced leaders at the forefront of your managerial team. 
• Minimal viable product – When will your business begin to turn a profit? The minimal viable product (MVP) refers to the version of your offering that stands the best chance of gathering extensive customer usage feedback while demanding the least amount of production effort and cost.
• Customer base – VCs typically expect considerable market research to establish precisely where your product fits in. Qualify and quantify your customer base with a thorough investigation into the markets you plan to disrupt.

Target The VC Firm For Your Business

With a concise evaluation of your business model, you will be able to pinpoint the VC firms most likely to fund your operation. VC firms are diverse in interest and experience. Therefore, it is essential to do your research to ensure a good match between your business and your potential funding partner.

VC firms may vary by: 

• Location – National and international VC firms may specialize in businesses based on their geographic location. Securing venture capital from a localized firm may mean a more hands-on approach and more direct communications. 
• Industry – Consider approaching firms with a background in your specific field. A firm with a background in medical tech might not be a good fit for your new entertainment platform. That said, some firms may be interested in pivoting or diversifying their holdings.
• Funding stages – Where some VCs are interested in the earliest funding stages, others might look for businesses that have established a foothold in the market.

Craft Your Pitch Deck and Presentation

After isolating the firms best suited for your financial needs, it is time to craft a pitch deck and follow-up presentation to inform, captivate, and prove your company’s investment potential.

The pitch deck is a series of 10 to 20 slides that provide insight into your company’s financials, market opportunities, and corporate structure. Additionally, your pitch deck should elaborate on topics including:

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