December 24, 2007
10 Things I Know About...
By Cory Hopkins
Attracting Venture Capital
By Laura Ring
VP of strategic relations for Castile Ventures of Waltham, and recent presenter at the WPI Venture Forum.
As told to Cory S. Hopkins, Worcester Business
Journal Staff Writer.
Always have a sense of the size of your market, your position in it and your strategy.
VC's have lots of experience, and know what is and isn't realistic in terms of projections.
The market you're going after needs to be significant to attract VC attention - at least $200 million.
Are you better, faster, cheaper than your competition?
An established company should be able to name the customers they want to target. Startups should know which types of customers they want to sell to.
There is no such thing as "no competition." If you're the only one in a certain niche, you won't be for long.
Different VC's fund different types of companies. Find the VC that fits your company, instead of fitting your company to the VC.
Get a foot in the door by asking for a referral from a trusted VC source, such as a prior portfolio client, banker, lawyer, accountant or another VC.
VC's are busy and inundated with proposals. Be succinct and articulate, and proofread carefully.
VC's are everywhere at business events. Exchange cards and handshakes, then follow up later.
By Laura Ring
VP of strategic relations for Castile Ventures of Waltham, and recent presenter at the WPI Venture Forum.
As told to Cory S. Hopkins, Worcester Business
Journal Staff Writer.
10. KNOW YOUR PLACE
Always have a sense of the size of your market, your position in it and your strategy.
9. DON'T EXAGGERATE
VC's have lots of experience, and know what is and isn't realistic in terms of projections.
8. SIZE MATTERS
The market you're going after needs to be significant to attract VC attention - at least $200 million.
7. KNOW WHAT MAKES YOU DIFFERENT
Are you better, faster, cheaper than your competition?
6. KNOW YOUR AUDIENCE
An established company should be able to name the customers they want to target. Startups should know which types of customers they want to sell to.
5. ACKNOWLEDGE COMPETITION
There is no such thing as "no competition." If you're the only one in a certain niche, you won't be for long.
4. DO YOUR HOMEWORK
Different VC's fund different types of companies. Find the VC that fits your company, instead of fitting your company to the VC.
3. USE WHO YOU KNOW
Get a foot in the door by asking for a referral from a trusted VC source, such as a prior portfolio client, banker, lawyer, accountant or another VC.
2. DON'T GIVE THEM A REASON TO SAY NO
VC's are busy and inundated with proposals. Be succinct and articulate, and proofread carefully.
1. NETWORK, NETWORK, NETWORK
VC's are everywhere at business events. Exchange cards and handshakes, then follow up later.
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