Entrepreneurs go to VC’s for money. But what if the tables were turned and investors had to pitch to entrepreneurs?
Well, It always ain’t this way. In fact Venture firms are getting scared. Realy scared. So that should scare you. More about this here in an article of WSJ.
Entrepreneurs always ask “How can I get Venture Capital” rather than “Will I get Venture Capital,” “Should I get Venture Capital,” or the key one, “Can I build my company without VC’s or by delaying Venture Capital?”
Today I read up on some stories and I wanted to share those with you. Spread this blog via Twitter/Facebook/Linkedin as you will, it might help other people with some great insights. Finding Capital is not easy!
Acticle one; the main question “How to Find a Venture Capitalist”. A venture capitalist (VC) is a person or organization that invests money in a business expansion or start-up. In exchange for the capital investment, the venture capitalist receives a share of the company in the form of stock, a position as a controlling manager of the company, or both. If you have a new or existing business or a business idea and are looking for financing, a venture capitalist may provide the help you need. To find one, read this article.
Article two; All venture capitalists are not created equal. The common denominator in our fundraising venture capital equation is capital, or investment dollars. That is the “what” in our equation — the known. Yet there are several variables: the “how,” the “where” and, to a certain extent, the “why” — which all lead us to the “who.” More indepth on this, read the article here.
Article three; One of the most important tasks for every startup is raising money. When choosing a VC, it is always tempting to go for the first or biggest pile of cash that comes along. However, keep in mind that your VC will likely be sitting on your board and impacting the future direction of your company so finding the perfect fit can, in the long run, be more important than the terms sheet. How to choose the right VC? Check it out here.
Article four; Picking a VC is hard. You don’t really have much to go on to decide who would make a good fit. Reputation of firm? Of partner? Deals done in your industry? It’s a bit of all of these. Read more on this here.
Article five; A company was a good fit for a Series A venture capital round. However, the company wasn’t able to get any interest. What was going wrong? Well, it looked like the company was targeting the wrong VC prospects. This is certainly a common problem—and can mean lots of heartache for entrepreneurs. In fact, the funding process can be time-consuming and may even distract a company. How, well read it here.
Article six;If you plan on raising money from investors, don’t go into it blind. Do the necessary research and get prepared. One of the most important decisions of any entrepreneur is where to get your capital. Investors are typically locked to your company until it sells or goes public. The relationship is often compared to a spousal one due to its permanence. And finding the capital to grow your company can be very difficult. An entrepreneur tells his story.
Oh and then this; Why 99.95% Of Entrepreneurs Should Stop Wasting Time Seeking Venture Capital. The writer concludes his article with; “Hardly any of you will ever get VC. Actually, most of you may never see the inside of a VC’s office. So, if you want to build a major business, learn to build it without VC. That’s what most of the billion-dollar entrepreneurs did.” Will you proof him wrong? Read his story here.
My take on all of this, I wrote about it a little while ago; Dutch Tech Company Receives 2.5mio Euros From Dutch Investors
Love to hear your warstories and feedback!