Finding and Approaching a VC

07/28/2016 00:05:05 to watch

Venture capital firms typically segment across three dimensions—sector, stage and size. Match with venture firms that know your industry, invest in your stage of business and can invest at the level you are seeking.

Suggested Readings

Founders School || Financing Your Venture: Venture Capital || Finding and Approaching a VC || Impact Guide (PDF).

Bussgang, Jeffrey. 2010. Mastering the VC Game: A Venture Capital Insider Reveals How to Get from Start-up to IPO on Your Own Terms. New York: Penguin Group. Chapter 3 “The Pitch: The One in Three Hundred”.

Jeff Bussgang. “Getting Introductions to Investors – The Ranking Algorithm.” Seeing Both Sides. Blog Post. Jun 12, 2014.

Jack Tankersley. “How to Approach Venture Capitalists.” Meritage Funds: Growth Equity Blog. Jan. 2 2014.

Questions for You

Which VC firms invest in companies similar to my stage of business? Are they geographically close or far away?

Does the VC firm I’d like to obtain investment from have any background or experience in my company’s industry?

How big should the fund be of a potential VC firm I’m looking at?

What connections do I have that could link me to a potential venture capitalist that would make a good investor?

Questions for Your Team

What connections do I have that could connect the company to a potential venture capitalist?

Tools and Exercises

Do Your Research: Find out whether a firm likes to lead the deal or follow? Who do they like to co-invest with? Do they back the entrepreneurs for the long hall, or do they like to bring in their own management teams?

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