Who To Get Venture Capitalists To Invest Finance In Your Business?

[Good-Guy]

When it comes to finance, we cannot overlook the importance of financiers (i.e. investors). Investors could play a huge role in any kind of business because not all the people who work in a business organization or even manage the business could be termed as investors because there are various kinds of partners in business. For example, you could be a business partner, but still you may never invest a dime in business. You will be termed as a "working partner" in the business. However, since people who invest money in the business are the real financiers of the business, they hold a very powerful position in the business. One of the most important kind of financiers are venture capitalist.

Most of the time these "capitalists" are actually big investment institutions such as huge business organizations or banks who are willing to invest in a business venture. There are many ways these financial institutions make money and many small businesses are ready to get such kind of venture capitalist to help them invest finance in their business. Of course they also consider the model of business before investing their money and analyses your business and profit generation methodology from various angles before providing finance. So, what are some ways to get venture capitalist to invest finance?

 

[Deleted member 28127]

You need to pay an agency because to bring investors it is work of medium or advertising company to do such stuff and convince investors for a commission from your part it couldn't be done by social media post advertising for example as people will invest money.

 

[goodmoneygoodlife]

VCs come later in funding. You'll need some seed rounds from Angel Investors first. One can for example go to angel.co or something and hook up with angel investors or angel investing syndicates there. Once you've funded your initial idea with maybe half a mil to 10s of millions, then you build a track record (though you'll need some sort of track record to get angel funding even).

VCs only fund when they see lower risk in the game. And normally they only come after you've raised a few rounds already. If you're just starting out, you'll only get angels to invest because they'll put in much lower amounts (and in exchange for a much higher % return than VCs).

So probably the #1 most important thing is to build something that actually makes money before asking for money, otherwise you won't even get the angel funding you need to eventually raise VC rounds.

A lot of startups nowadays are like 'we'll make money 50 years from now' lol. Who wants to invest in that?

 

[btaliat]

Great ideas is the first thing that attract investors. When an intending business man had a novel and great idea, it may attract more investors to invest in the project. Apart from this, there is need for a business organisation or a business individual that needs investors to be reputable.

There is also need for the business to have both short and long terms in what they are likely to be generating as income. This will give investors opportunity whether to invest as a long term or short term investor.

ALso, there should be reasonable interest on the amount invested, interest that an investment will generate is the primary concern of an investor.

 

[Kingsley]

Just as we are thinking of how to get funds or support from potential investors we must also consider, how the investors will get back their returns on investment, which is extremely important, it not complete if we only think of how to raise the funds but fail to consider how the returns will come. we have seen people who successfully got the required capital they need to start up or to support their existing business but today those businesses are no where to be found.

When one have gotten the requisite understanding of the type of business you want to venture into one can source for financing from famiyl and friends or seek other people with like minds to invest in your existing business or new business idea.

Then in worst case scenario where they seems to be no help that is forthcoming then one can access loans from banks and online loan application.

 

[Yusra3]

Venture capitalists will ask you to lay the innovative, scalable business model with the possibility to get extremely growing, the clearly defined target market. Create a business plan where you will demonstrate traction, strategies for differentiating your product/service on the market, in addition to financial projections and exit strategy that you plan to pursue to make sure that your business is sustainable. Take advantage of the wealth of contacts you've built up on LinkedIn. Also, try to arrange an introduction with investors who are usually active in your sector and at your stage. At the end of the day it is to have VCs backing you up on what is your dream, the magnitude of the market, and how capable your team is to pull through for a successful round of equity fund raising.