HOW TO LOCATE VENTURE CAPITALIST (VC) FOR YOUR BUSINESS
A venture capitalist is said to be a financier that provides capital for a business that exhibit high growth potential in exchange for equity stake. It could be investing in start-up ventures or supporting small businesses that want to expand but do not have access to equities market.Now, if you have an explosive business idea to start a business or perhaps you have an existing business that needs money to grow, the main options could be borrowing from friends and family, borrowing from the bank or seeking equity funding from a venture capital firm.Most banks are skittish when it comes to lending to start-ups and small businesses especially in the current economic and political climate. And if you may need just more than a million naira, lending from friends and family should not be the most likely of options.Although Venture Capitalist funding ability has decreased over the years in Nigeria, however if you have a good business idea and plan, you can still attract venture capitalist to finance your business.As a consequence, I have listed below ways of locating Venture Capitalist for your business.
Check Venture Capitalist Firms
Venture capitalist firms provide various resources to entrepreneurs and small businesses alike in order to assist them to locate the best venture capitalist suitable and willing to invest their money in your kind of business. There are lots of venture capitalist firms in Nigeria and they include: StresSert Integrated Limited, Apex Consults, Dbreeze Protection Services, Megamoh Logistics, Zoe Real Estate Properties and a host of many others.
You can locate venture capitalist for your business by getting the necessary information from people around you. Thus, ask your friends, family and colleague at your work place. We are in a world where information moves faster than speed train. Successful entrepreneurs, business brokers and corporate attorneys could also be another reliable source of information with regards to locating venture capitalist in your locality for your business. More so, constantly check your social media networks for contact information and names of venture capitalist associations closest to you.
Another means of finding venture capitalist for your business is through the internet.The internet is one of the valuable tool use in getting information in this present clime and you can as well use it to locate venture capitalist willing, suitable and may be keen on investing in your business enterprise or expansion. However, even though the internet seems to be a simple tool to use in getting information, it would be seemingly difficult tool you cannot use to your business advantage. As a consequence, I will briefly list out ways you can use the internet to locate a venture capitalist.
Subscribe to venture capitalist blogs and website
Most venture capitalist use blogging as a tool for marketing their business, sourcing for entrepreneurs, interacting and socializing likewise with venture capitalist associations.Searching for venture capitalists on social networks could help you locate same. Most venture capitalist use social networking to advertise their business and interact with entrepreneurs and other investment firms. Social networking sites such as Twitter, LinkedIn, and Facebook are really good place to begin your search for a venture capitalist that would invest in your start-up or aid your business expansion.
Do thorough research
Locating venture capitalists to finance your business is more than just looking up names and contact numbers in the internet or directory. This is because you would want to find a venture capitalist most suitable for your business idea or company. This connotes, doing a rigorous research to find out everything you can about venture capitalist you are considering. As a consequence, get information about venture capitalists that will aid you in locating them, visit their websites, check out their twitter handles, Facebook and LinkedIn profiles and also read their blogs.
Check for references
Not all venture capitalist have the resources and capability to fund your kind of business. As a consequence, if you want to locate the one that will actually help make your start-up grow or expand, check for firm’s reference to know the numbers of successful deals it has put together and if they have previously financed businesses similarly to yours. A reliable and legitimate venture capitalist association should be willing to provide you with references. More so, many maintain websites where they publish news and information about their most successful clients and deals.
Hire a professional venture capitalist consultant
There are lots of venture capital consultants, corporate attorneys, and other professionals available to help you locate a venture capitalist that is best suited for your kind of business enterprise. These professionals can help you in getting basic financing, give advises for increasing your business profitability, and the most important part – packaging and selling your business idea and plan to prospective venture capitalist. If you are providential enough to get a meeting with a venture capitalist that might be suitable for your kind of business, it is important to be prepared. That means knowing what the venture capitalist expects from you. In most cases, they will focus more on your merchandise and also on your idea, with the sole aim of probing your subject area knowledge, as well as your zeal and commitment. Also, be prepared to discuss your ambitions. Venture capitalists would want to know if you are trying to start a business or if you want to expand. This helps them gauge whether you are up for the sort of growth they need in order to make a reasonable return on their investments. Venture capitalist may also prod how well you have thought through the business side of things: can you explain your principal needs? Can you credibly predict the market opportunity? The cost of running the business and the revenue you will get? Those are all fair and likely questions that any prospective venture capitalist will ask. Like you, venture capitalists are seeking a good fit. So like with any other long term relationship, they would want to be sure that you are well-matched.
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