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dBusiness Group
(704) 907-6196
Charlotte, NC
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Venture Capital - Three Steps to Success
Introduction - Understanding the Process
Professionally managed venture capital funds provide
seed money to entrepreneurs. Typically, VC firms
establish partnerships, in which to invest the money of
their limited partners. Venture capitalists invest in
companies for a short period of time for a substantial total
return.
Research is vital to targeting the right venture capitalists.
Criteria for selecting the right venture capitalist include
geographic, industry specialization, stage of development,
size of investment preferences, investment role, and
co-competitive ventures.
Writing a Business Plan
The first step is a striking, sound business
plan. The
business plan must immediately grab the venture
capitalist's attention. A good plan is crucial, first as a
management tool, and second as a means to obtain
financing. While the plan is an essential element in
securing financing, it should also be an operating guide to
the business, with the goals, objectives, milestones and
strategies clearly defined and well written.
A good business plan will demonstrate the viability and
growth potential of the business, while showcasing the
entrepreneur's knowledge and understanding of what is
needed to meet the company's objectives. The venture
capitalist's first glance at the business plan is their initial
opportunity to evaluate the individuals who will manage
the business and to measure the potential for return on
their investment.
Prepare the Financials
Realistic financial forecasts within the business plan are
important to attract investors and retain their interest to
participate in future rounds of financing. The financials
must accurately reflect the various product development,
marketing and manufacturing strategies described in each
section of the plan.
Go to Step 1
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