If you’re looking to raise venture capital like Greg Lindae and are a little daunted by the task in front of you, simply continue reading to discover 5 tips on raising venture capital, which will increase your chances of finding the right investor, sooner rather than later.
5 Tips on raising venture capital:
1. Never make the mistake of cold calling investors
If you’re looking to raise venture capital, one of the worst mistakes you can make is to start cold calling potential investors or to start sending unsolicited business plans to potential investors, as not only will your business plans get shot down in seconds but you’ll also run the risk of having both your name and your company’s name blacklisted.
2. Use referrals to reach out to carefully selected potential investors
If you’ve identified a potential investor, who you believe would be seriously interested in helping you raise venture capital, your first step should be to find a referral, who’ll be able to introduce you to the appropriate contact within the business.
As businessmen and woman are far more likely to listen to a business proposal from an individual, who is known to one of their trusted associates, rather than a cold caller, who they know nothing about.
3. If you don’t receive the funding you need in 6 months consider changing the deal which you’re offering investors
The difference between businessmen and women who are able to successfully raise venture capital for their business and those who fail to raise 50% of the venture capital which they need within 6 months, is that those who are unsuccessful don’t realize that they may have to change the deal which they’re offering investors.
As the current deal which they may be pitching may not be competitive enough to gain attention or may not offer potential investors a high enough return on investment, to entice them to talk business. If after 6 months you don’t have an offer, take a serious look at how you can make your deal more attractive to potential investors.
4. Don’t let rejection get you down
If the first potential investor shoots down your proposal, don’t take it personally as there is every chance that business plan is sound but that they’re not interested in investing in your business’ industry or have already invested in a similar business and are looking to diversify their investment portfolio.
Instead, be proud of yourself for having the guts to talk to an investor and focus on finding the next 3 potential investors who may very well be interested in your business plan.
5. Look for investors who can provide you with more than a cash injection
Many businessmen and women make the mistake of accepting an offer from the first potential investor who shows interest in their business. Instead get into the habit of choosing investors who have the experience and knowledge to help take your business to the next level!
So what are you waiting for? If you’re set on obtaining a significant amount of venture capital, start using the 5 tips listed above in order to meet your goal in the next few months!
