4 Tips to Approaching A VC.

Venture capitalists a.k.a VCs, are a set of people who invest money in business ventures, start-ups, and expansion. VCs are always looking to invest their capital with a long-term growth perspective. The capital that is invested is known as venture capital. These investments are risky as they are illiquid, but they also guarantee impressive growth depending on the build-up of the company. Since it is their money that is at stake, they have the power to influence major decisions of the company they have invested in. Venture capitalists are very exclusive when it comes to investing in a start-up.

Getting a Venture capitalist to invest in your start-up might be a very hard nut to crack but in this article we will be breaking down 4 proven tips to put in place when approaching a VC:

1. Networking: VCs receive 100s of business plans and pitch decks every year. They really do not have the time to go through each one in detail. The surest way to reach a VC is to have some social proof. You should network and find somebody who can introduce you to a VC. You can use this opportunity to learn the steps they had to take in order to get to their current position. Networking is the key to connect to a venture capitalist, getting an introduction from someone who is close to a VC can make a very huge difference because then your company may be seriously considered. If your company is a start-up, one of the best ways you will actually be able to get a VC to invest in you, will be through connections.

2. Treat everyone with respect: VC’s are built on a solid layer of respect therefore it is essential to treat the investor and all the people around him with respect. VCs pay attention to how entrepreneurs interact with everyone around them to judge their behavioral patterns that may affect future business growth.

3. Research: Impressing a venture capitalist is extremely hard compared to impressing an angel investor, therefore being well researched with your business plan is a must. Not only the business plan, but also having knowledge about the investor is important because then you’ll be aware of the key features that you need to impress him or her. Look for VCs who have expressed interest in investing in your start-up’s space.

4. Prepare your pitch: It is important to have specific and to-the-point documents that explain your wide goals and objectives for your start-up. Investors require the right amount of information, with a very good presentation, delivered within a short period of time. Having a clear financial plan to present is paramount.

Before any of this, you should be aware that unless you actually have a market validated product and a team in place, it is extremely unlikely that you will get funded. An idea isn’t worth much unless you have market validated it. As a start-up or founder you can apply for funding at Ingressive Capital.