Securing chance finance is a critical turning end in the energy of a start-up business. Feat capitalists act not ethical bring coinage to the cash-strapped start-up, however besides pass counseling in running the corporation since they craving to eventually sell their stake at a premium. Nevertheless, they are inundated with investment opportunities and are selective in the type of action they back. Entrepreneurs should excogitate the later steps in applying for finance.
These investors prefer referrals rather than biting calls.2. Pick investors who prefer your Production and trustworthy profile.
Instructions
1. Compile a case of venture-capital companies. An conspicuous source is comrade entrepreneurs who annex received such financing.Dare capitalists specialize in decided industries. Most Testament avoid exact blossoming start-ups without track records.
3. Prepare a terse and intriguing "elevator pitch" for the immediate encounter. An elevator pitch is a proposal that can be explained in about 30 seconds.
4. Be prepared to go into details on the business and how it will generate income, the management's (your) qualifications and the structure of the investment.
5. Give meticulous attention to the potential market for your products. Avoid making crude statement such as "All we have to do is get 1% of the market." To investors the question is "How?" or, more importantly, "Why not 99% of the market?"
6. Answer all questions clearly and honestly. Venture capitalists do not have the time for coyness or vague answers.
7. Do not exaggerate and do not hide important problems. Venture capitalists are seasoned entrepreneurs turned investors; they can spot lies and problems.
8. Do not press for an immediate decision. Ask an indirect question such as "If we assume what I just presented in the business plan is correct, could you please comment on it in general terms?" If you feel he is not forthcoming, try offering him certain investment terms or concessions.
