moonchild
VIP Contributor
Raising venture capital is the goal of many founders, because naturally as a business grows, cost of operations always skyrocket, because you'll have to hire more people and new expenses may pop in that you have to manage or your growth will tank.
Some businesses also, believe raising money should be done way before gaining any traction, this can be the case for a start up that deals with a lot of inventory.
So, let's get to the point of the article, to raise money from investors you have to do the following.
1) Gain Traction: You need a growth indicator to get an investor interested, most investors are bombarded with many business plans every year, how can you stand out and grab their attention, it's by gaining traction.
2) Study A Venture Capital Before Contacting: You should study them and understand the kind of companies they invest in before making your move, this may save you a lot of time because some VC have their preferable niche.
3) Don't Low Ball Them: When you are dealing with VC make sure your offers are generous, I dont mean you should sell yourself short, make sure you give them an equity that compensate the amount they're giving you.
Some businesses also, believe raising money should be done way before gaining any traction, this can be the case for a start up that deals with a lot of inventory.
So, let's get to the point of the article, to raise money from investors you have to do the following.
1) Gain Traction: You need a growth indicator to get an investor interested, most investors are bombarded with many business plans every year, how can you stand out and grab their attention, it's by gaining traction.
2) Study A Venture Capital Before Contacting: You should study them and understand the kind of companies they invest in before making your move, this may save you a lot of time because some VC have their preferable niche.
3) Don't Low Ball Them: When you are dealing with VC make sure your offers are generous, I dont mean you should sell yourself short, make sure you give them an equity that compensate the amount they're giving you.
