A few years ago, start-ups with any whiz-bang tech idea could court venture capitalists. Today, start-ups are hard pressed to find interested VCs. That's because VCs are proceeding with caution, either making investments in existing portfolio companies to ensure success, or looking very, very carefully at new investments to prevent getting burned.
Indeed, it's tough going these days to obtain venture capital, but it's not impossible. If you're a start-up with huge growth potential (think tens of millions in revenue here) or a fast-growth company already hitting the revenue mark, venture capitalists might be interested. Here Inc.com shares advice for finding and securing venture capital, including some back-to-basics information on your capital search, ways to target and court the appropriate VCs, and how to make your business plan and pitch irresistible.
Do You Need VC Money?
Evaluate your need for venture capital before you seek it.
It's a prime rule of business plan writing: focus, focus, focus. Author David Gumpert in How to Really Create a Successful Business Plan offers strategies on how to tailor a plan for your intended audience.
Once CollabNet was the darling of VC firms. But in 2002, its CEO was trying to determine whether or not to seek new funding through a down round -- a stage of venture capital financing that results in a lower company valuation.
We've compiled a list of boot camps and forums across the country where entrepreneurs interested in acquiring capital are learning to fine-tune business plans and refine pitches to potential investors.