Venture capital for a new idea or invention
Venture capital is an essential building block for business. In today’s high-tech environment, investors play an increasingly important role in the start up and expansion of business.
Inventors, entrepreneurs and small business owners can find information and resources to help in the search for financing. There is much to be gained, and much to lose in the arena of venture capital.
Venture capital negotiating process
Your success in getting financing depends on several key factors.
What if you only have a good idea? The chances of finding a VC are minimal. It isn’t enough to be excited about the next earth-shattering product or service.
Make sure that the VC you are approaching has an interest in the area you are proposing. You wouldn’t approach a VC specializing in plastics to invest in a post and beam construction firm. Do your homework by checking their website, asking questions, seeking referrals.
You will almost certainly experience setbacks and obstacles in your quest for venture capital for a new idea or invention. Many VC’s say that it is necessary to follow up the intial contact with phone calls, emails, snail mail, and even personal visits.
You must believe in your idea and be passionate about it. Otherwise, why would anyone be interested enough to risk their money as an investment?
What are some pitfalls?
- Keep your eyes wide open
- Don’t be in a hurry
- Communicate with you investor