Venture Capital Source

Finding a source for venture capital is easy, but actually securing the funding takes a bit more work. Before you begin the search for funding, make sure that your business plan is flawless. Some things to keep in mind when looking over your business plan is that a venture capital firm will be looking for quick growth and a definite timeline. The job of the venture capital firm is not to provide you with a line of credit--instead, they want to get in, get out, and make a profit. If you are not comfortable with this level of pressure, you should consider looking for alternate means of funding.

Although you have spent a great deal of time--and probably money, as well-- perfecting your business plan, you will not use it initially. Write a detailed summary of your business plan, including the most relevant information about your idea, the financial data, and why your plan is worth backing. This summary is what you will use to approach venture capital firms.

As tempting as it is to send out this summary to every venture capital firm that you can find a mailing address for, do not do this. The relationship between venture capital firm and start-up business is extremely cozy. They will be placing people on your board and in important positions within your company. They need to be a good fit with you.

Select the firms that have similar goals and expectations as yours. If they are interested in high-tech, cutting-edge computer businesses, and that is what you are, push hard for the partnership. If they are interested in high-tech, cutting-edge medical research, and you are in the computer business, save your efforts. It is not enough to have a somewhat complementary angle. The competition is so tough, and the field so diversified, it only makes sense to try to sell your plan to the most relevant firms.