With the growing need for unique ideas and desires to be entrepreneurs, it becomes really important to be able to arrange for the capital required to run your start-up. Where to start from? How to make investor believe in your idea? People without a promising idea or business that doesn’t seem like it can grow fast don’t get venture capitals. There are certain tricks to find a Venture capital investor.
- Impact of your business:
This is important as being an entrepreneur is fine but you have to have a clear idea about the type of business you need, to rephrase do you want a high impact business where you make people rich but aren’t your own boss or a low impact one where you have a regular income and you get to be your own boss. You can either be a respected business man with his set of limitations or create another Microsoft. Choice is yours.
- Change of locations:
Now that you’ve already decided the kind of business you need, second step is to change your location. If you are looking for a high impact business, be prepared to move to Silicon Valley. That’s where you get the right exposure and people who might be interested in investing in your ideas. There are people like Chris Sacca, who have been investing in multiple businesses and most of them have shown great results.
- Get a team:
Believe it or not, a team is the most important ingredient after you have acquired investment. The fact being that it’s your team that will carry on with the work and if they aren’t up to the mark, the chances of you being successful goes down too. In a high impact business, there is going to be a lot of situations where the stress will be unbearable. Your team should be able to survive that and not implode.
- Accept failure:
Someone rightly said, failure is the key to success. If you want to succeed amidst all that competition and pressure, make sure you are prepared for the failures. Even Kobe Bryant didn’t retire unscathed, you’re trying to build an empire here. The point is your investment remains even if you fail a couple times, the task for you is to channelize your focus to winning.
- Know the basics:
It’s very important for you to know the basics; what is going on in the world of venture capital or the terminologies as you can’t survive without these. Take time and learn the lingo. Before you set out to prove that you can win the Silicon Valley, make sure you know what Venture deal is and how it works. How to calculate the valuation and what the valuation is. These need to be your first focus as no one will invest on a person who lacks basic knowledge of what he is about to dive in.
These are a few basic tips one can consider before taking the leap. Be thorough, plan properly, focus on your team and you can get in just right. Don’t be a novice, work on experience before you set out.
In collaboration with Chris Sacca
An accomplished venture investor, company advisor, and entrepreneur, Chris manages a portfolio of over eighty consumer web, mobile, and wireless technology start-ups as well as an array of mature enterprises through his holding company, Lowercase Capital. While primarily known for its investments in seed and early stage technology companies like Twitter, Uber, Instagram, and Kickstarter, Lowercase has quietly grown to be one of the larger venture funds in the United States.