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Amy Gesenhues

Guide to Landing a Venture Capital Deal

Get your business plan and your management in order

By Amy Gesenhues, Director of Marketing, Autodemo LLC

After a big boom and bust, venture capital funding is on the rise again. But today's VC investors want more solid information from the companies they choose to invest in than in the frenzied days of the Internet bubble. And remember that VC firms typically look to cash out in three to five years, particularly by seeing your company acquired or going public. Follow these guidelines to increase your chances of securing a venture capital deal:
  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.

Tips & Tactics
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.

The official source of Landing a Venture Capital Deal is
the Venture Capital Firms and Funds page at Business.com

More Featured Listings
Venture Capital Database
Find venture capital firms, technology startups and venture capital transactions. Free Trial.
Free Trial
www.VentureDeal.com
Venture Capital Resource
Offers a venture capital directory on CD-ROM. Includes contact data for all active US venture capital firms in 90 industries.
www.capitalvector.com
Need Startup Capital?
Contact active investors. Register to call or email investors.
www.unsecuredline.com
Find Venture Capital
20,000+ Investors. Get funded.
www.gobignetwork.com/Venture-Capital
Related Resources

Recommended Solution Providers

The Go Big Network
on-line marketplace that connects the startup and small business community

VentureOne
Venture capital research firm that offers investors, service providers, and entrepreneurs the most comprehensive, accurate, and timely information on the venture capital industry.

Vfinance.com
Portal where you can post a synopsis of your business idea, research lenders or investment banks, and get leads on accountants, lawyers, and others.

BusinessFinance.Com
Comprehensive business funding directory.

Venture Capital Access Online
Provides online services and tools to entrepreneurs, investors and service providers.

NVST
Offers access to venture capital sources, research databases and educational resources.

AllBusiness.com: Venture Capital Forms
Offers a library of forms, agreements and checklists to assist in getting funding for your business.

Best Sites to Learn More

About.com: Venture Capital
Articles about finding venture capital for business owners.

Entrepreneur.com: Startup Financing
Resource center containing articles regarding small business finance.

Inc.com: Raising Start Up Capital
Raising start-up capital how-to guide.

AllBusiness.com: Venture Capital and Angel Investing
Articles that cover the basics about venture capital, angel financing, and funding your business with loans or equity.

National Venture Capital Association
NVCA's mission is to foster greater understanding of the importance of venture capital to the U.S. economy, and support entrepreneurial activity and innovation.

The Capital Connection
Links to hundreds of VC sites, angel networks and articles on business planning.

Best Blogs and Forums

Funding Universe: Forum
Chat about funding opportunities for your business in this friendly forum.

VC Fodder
Forum about venture capital, entrepreneurship, and all other issues related to starting and growing a business.

Go Big Network: Go Big Forums
Discussion boards that cover starting a business and financing it.

Deal Architect: VC Blog
Involves global trends on venture capital.

Feld Thoughts: Venture Capital
Blog for entrepreneurs looking for VC funding.

Venture Blog: VC Posts
Devoted to posts on how to present your company.

AllBusiness: VC Post Blog
Blog exclusively geared toward small business venture capital.



FEATURED LISTINGS
Venture Capital Database
Find venture capital firms, technology startups and venture capital transactions. Free Trial.
www.VentureDeal.com
Venture Capital Resource
Offers a venture capital directory on CD-ROM. Includes contact data for all active US venture capital firms in 90 industries.
www.capitalvector.com
Need Startup Capital?
Contact active investors. Register to call or email investors.
www.unsecuredline.com
Find Venture Capital
20,000+ Investors. Get funded.
www.gobignetwork.com/Venture-Capital
Orlando: Life Science and Biotechnology
Orlando has over 150 biotech & life science companies with top hospitals, research facilities, & medical equipment vendors. Free report download here.
www.orlandoedc.com
Energy Industry Investment
Invests in and finances the global energy sector, providing equity, debt, leases, project finance, partnerships and commercial financing.
www.geenergyfinancialservices.com

What WorksTM for Startup Financing

Frances Sharpe

Creating a Great Business Plan

 By Frances Sharpe, freelance writer/editor
Learn how to write a business plan that puts you in business
A business plan is like a roadmap that shows where your business is going and how it's going to get there. This detailed look at where your business is heading can do much more for your business than simply provide you with a route to follow. You can use it to convey your vision to potential investors, attract key employees, prospect for new business, or deal with suppliers. When writing a business plan, the following components ... Read more

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