Venture Capital Info
What they do?
Early stage Venture Capitalists and Business Angels are very hard to come by and getting time and money out of them is even harder. Here at WANTANINVESTOR.COM we want you access these investors and their capital so you can be given the best chance possible to grow your business. Venture Capitalists fork out billions of dollars each year to small,unproven ventures. They are all hoping to find the next “big thing”. If you can show them that your company is the next “big thing” you will surely grab their attention.(For investing in your company they will most likely want shares,this is not always the case)
What prompts Investors to get there cheque books out?
It is easy for VC’s to estimate the value and invest-ability of established companies. There are cash-flows,sales reports and also profit and loss records for them to analyse. From this analysis they can then come up with reliable figures for investing. It is far more difficult/risky to analyse early-stage ventures which means they will need to put in a far greater effort and more time in order to grasp the business and the opportunity. The following are some of their major considerations.
Great product’s with a competitive edge
Investors want to invest in products and services with a competitive edge that will last. They look for products/services that customers can not do without or can not ignore as they(the products)are cheaper than what is already available. They want to invest in companies that solve real issues and fill gaps in the markets.They also want these companies to generate sales and profits before competitors enter the market. The less competitors the better.
The most important thing for VC’s when considering an investment is the management. VC’s invest in companies with management teams able to execute on the business plan. They are looking for executives who have a proven track record and have generated high returns for investors in the past.”New”or”Green” managers are less likely to get investments. Companies looking for VC’s investment should be able to provide qualified people who will play central roles in the company or be willing to hire these executives to fulfill these roles. They prefer to invest in a bad idea led by a great management team then a great idea that is badly managed.
Size of the market
Proving that your business will target a large, addressable market is very important for grabbing VC’s attention. VC’s expect business plans to include detailed market size analysis.This means providing third party estimates found in research reports. The bigger the market the bigger the likelihood of exciting the VC’s and getting their time and capital.
Before putting money into a company VC’s spend a lot of time analyzing opportunities and looking for key ingredients for success. They want to see that the company has a competitive edge, that the management is up to running the company successfully and that the market is sufficient so that they can make a great return on their investment.I you can prove all(or most) of these factors to these investors you will have a far greater chance of getting their time and most importantly their money!
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