Guide to Venture Capital Firms with Technology Focus

Venture capital for new technology is still at a high level. Entrepreneurs seeking to attract technology industry venture capital firms face a competitive, even ruthless, process. However, those seeking technology VC can see success with a novel product or service and proper due diligence.

If you are seeking venture capital for new technology, understand that venture capital firms with a technology focus look for:

1. Talented leadership. If not you, then make sure you install key top managers that have the skills and experience to take your company to high profitability and catch the eye of technology venture capital firms.
2. Innovation. Technology-based venture capital firms don’t want to invest in an also-ran.
3. Potential for market growth. Tech VC firms want a sizable ROI—up to 1200% on a startup or 700% on an existing company.
4. Proximity. Most technology industry venture capital firms like to invest in firms that are close to them so they can go and check on their technology investment in the budding company in a day’s time.

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

Focus on technology venture capital firms

VC is an arena that allows for a wide variety of specialization. By focusing your search on venture capital firms with a technology focus, your search will narrow considerably to firms that are interested in your product.

I recommend: Technology Funding focuses on IT companies and is based in the Silicone Valley. General Atlantic invests exclusively in technology firms and is a worldwide player in the tech investing market.

Promote yourself online to VC firms

Alert tech VC firms to your funding needs via the web and attract technology investment.

I recommend: Go BIG Network allows you to post a funding request and in turn seeks to match you with a tech VC firm. You can also see links to additional resources to help you start or grow your business. Funding Universe offers its members a 13-lesson boot camp designed to teach entrepreneurs how to raise technology venture capital.

Seek out local technology-based venture capital firms

Often, tech VC firms prefer to invest in local companies that they can visit and check on progress regularly.

I recommend: Capital Vector offers a searchable directory of all active US technology investment firms. Sorrento Ventures is one of the technology venture firms that focuses on the growing Southern California IT market. Advantage Capital has offices in Missouri, Louisiana, New York, Texas, Florida, Mississippi and Washington, D.C., with affiliated offices in Alabama, Colorado and Wisconsin.

Tips & Tactics
Helpful advice for making the most of this Guide

• Ask a well-connected lawyer or accountant you know to introduce you to a venture capital technology firm.
• Size up the competition. Your proposal for technology industry venture capital will be more credible if you take the time to study potential competitive threats and how to overcome them.
• Consider joining a business incubator for technology firms. Such incubators can help you reduce startup risk, access technology industry venture capital and provide a jump-start to the path of profitability.

The official source of Venture Capital Firms with Technology Focus is
the Venture Capital Firms with Technology Focus page at Business.com