Guide to Landing a Venture Capital Deal

Get your business plan and your management in order

By Amy Gesenhues

1. Create a high-level, comprehensive business plan.
2. Find a venture capital firm that fits your company.
3. Post your venture capital funding request online.

Action Steps
The best contacts and resources to help you get it done

Create a business plan

The more thorough and complete your business plan is, the better your chance of securing venture capital funding. VC's will be looking to see that you have a unique product in a growing market and that you can forecast high profit margins and high growth in sales.

I recommend: Use SmartOnline's Smart Business Plan software to write your business plan or contact VentureArchetypes to write your plan for you. You can also create your business plan using an outline from Venture Associates.

Find the right management team to run your business

You may have the greatest business idea in the history of the world, but that doesn't mean you know how to run a company. Venture capital investors want to know that the company they're investing in has the right people in charge. Recruiting qualified, experienced executives demonstrates that your business is set to succeed.

I recommend: Use ExecuNet or the dmoz Open Directory to recruit executive-level management professionals from a variety of industries.

Find the right VC firm

Venture capital firms tend to limit their investments to a few industries. Find a firm that will fit with your company's financial needs, growth strategies and culture.

I recommend: Use vFinance, Growthink Research or Capital Vector directories to find firms.

Let a VC firm find you online

The best way to get something is to ask for it. Posting your funding request online is a quick way to let investors find you. If you have a great idea with the right resources and a business plan to back it up, venture capital investors will be fighting to finance you.

I recommend: Post your funding request online at the Go Big Network or Business Plan Posting.

Helpful advice for making the most of this Guide

• •  VCs typically take preferred stock in your company and seats on your board. If you're not willing to give up some ownership or control, look elsewhere for investment.
• •  If your business has been around awhile, get a private equity rating service to rate your business' value and what will be gained (or lost) from accepting venture capital funding.
• •  Landing a venture capital deal could take as long as six to nine months.