Ten Ways to Get a No from a Venture Capitalist

December 2, 2008 · Posted in Advice, Business Plan, Strategy, Venture Capital · Comments Off 

Here are ten ways to get a negative response from a venture capitalist:

1. Not doing your homework – VCs tend to invest in a specific space and stage; for instance, early stage biotech or growth stage retail. If you do not fit their investing criteria, they will turn you down flat.
2. Sending your business plan in cold – If you have a really great technology and you write extremely well, there is a chance that the plan could make it to a partner’s desk eventually; however, more likely it will sit in some pile on an associate’s desk until spring cleaning. Find an introduction to the firm. Read more

Raising Capital – Writing the Business Plan that Succeeds

November 13, 2008 · Posted in Angel Investment, Business Plan, Marketing Document, Venture Capital · Comments Off 

You have a great idea or maybe have started a company and need some capital to support your revenue growth. You think that the best source for the fund-raising will be venture capital or maybe an angel investment. You have mapped out your fund-raising strategy and are at the point of writing your business plan. You want to write a business plan that will succeed in bringing in the needed funds.

Recognize that the business plan you are writing is essentially a marketing document. You are marketing your company to an investor who will be buying a piece of it. Like selling anything else, you need to understand what the investor is looking for. Venture capitalists are generally looking for two things. Read more