There are roughly 750 venture capital firms in the United States, and 600,000 new businesses cropping up every year. Talk about competition. To attract a VC and get the funding you need to grow your business to a massively lucrative exit, use the following beauty tips:
1. Possess the cure for pain.
The market pain, that is. Where is the pain? That is the question you should be asking yourself. Identify a market segment that needs your product or service and is either not getting it, or not getting it the right way. If your company can deliver something that makes your customers breathe a grateful sigh of relief and, then you are an attractive company to a venture capitalist.
2. Position your company to penetrate a large and growing market.
VCs love companies in large and growing markets – especially companies that can capture and continually penetrate new customer segments of that market. It’s all about high growth and fast exits. So acquire some in-depth reports from at least one independent market research firm showing that there are plenty of customers waiting for you – and flaunt it.
3. Team up with a hot management team that has been there and done that.
If your management team – and your Boards of Directors and Advisors, for that matter – have experience growing companies like yours quickly towards a lucrative exit, you look fantastic.
4. Write great strong catchy lines and use them.
To woo a VC, you will eventually need a high concept pitch, a punchy elevator pitch, an irresistible teaser email, a great business plan, a diligent operations plan, a gripping executive summary, and a solid slide presentation. Get busy preparing these materials so that you can be ready when the right VC comes along.
PRC has many years of experience in these related areas and can aid you in your efforts.