Friday, August 12, 2011

“How to get Introduced to Venture Capitalists”

While creating my business plan, I knew that I would need to start shopping for venture capitalists to invest into Rising Phoenix Entertainment Group. Through that research, I found this article on ehow Money “How to get Introduced to Venture Capitalists”. It gives you 9 steps to follow and if these tips are followed correctly you will be on your way to a face-to-face meeting with a Venture Capitalist.

1 Draft an articulate one- to two-page executive summary and/or a 10-slide PowerPoint presentation to introduce your business concept.

2 Research which venture firms you want to work with ahead of time. Pick more than one and less than eight to start with.

3 Get in touch with any direct contacts you have at the firms. Drop a quick e-mail to your contact asking for a meeting. E-mail, rather than a letter or fax, is a good method of communication because it is fast and can be easily forwarded to others in the firm.

4 In the absence of a direct contact, adopt a "six degrees of separation" strategy. Ask your friends, lawyer, accountant, boss, neighbor and other entrepreneurs if they know anyone at the firms you're targeting. Ask them to send an introductory e-mail on your behalf.

5 Turn six degrees of separation into four degrees, then two degrees, and then eventually a direct meeting. Get introductions to people who can get you a stronger introduction to the venture firm.

6 Within 48 hours, follow up with your own e-mail introduction. Remember to mention your contact's name in your message. Attach your business's executive summary for review.

7 Be sure to send your executive summary at least two to three weeks in advance of when you would like to meet.

8 Arrive at the meeting on time. Even better, try to arrive 15 minutes early.

9 Once you are in the meeting, relax and have fun. Remember, you are trying to change the world in some form or fashion, and that's a big deal.
                                                                         
                                                                         

The eHow Contributor also offered a several Tips and Warnings that may be helpful.

Tips & Warnings
· Be persistent and determined, but realistic. Spend no more than three or four months trying to get in the door of any one venture firm.
· Be proactive and creative in expanding your network. Attend events, meetings, dinners and speaker series where entrepreneurs and venture investors congregate. Make yourself visible.
· Be specific and direct in your communications. Do not discuss high-level generalities about the industry or your specific marketplace. Most venture firms have heard the market size numbers several times already. Instead, tell them what you are going to do and why it is a big deal. See "How to Make Your Business Plan Stand Out."

· Avoid sending a random or "cold" introductory message to a venture firm with which you do not have a contact. The better firms receive a large volume of business plans. Personal introductions will increase your chances of securing a face-to-face meeting.

· Fundraising is only one part of building a company, so don't let that take too much time away from running the business.
                                                                         
                                                                         

I hope that you found this information useful as it has been for me and has helped me to begin my journey to find a Venture Capitalist. I have also attached various sites that may be additionally useful.


Source: http://www.ehow.com


Additional links:


www.lendio.com/angel-alternatives


www.RaiseMeCapital.com


www.xpertfinancial.com


www.Growthink.com/VentureCapitalFormula

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