How do I attract venture capitalists or funding?
I have a business idea that I would like to explore. My only draw back is that its a little capital intensive. Therefore the need to find a venture capitalist or some funding.
Kindly assist me in going about this.
Business in Emerging Markets / Growth markets, Scale-able Successful Small Business models are a few which attract VC's.
Depends how big you are or how big your idea is. Normal starting point is Angel Investors, then once you've proved your concept, Private Equity comes next and then Venture Capital. Alternatively, if you're well prepared and have a business plan try www.crowdcube.com, by far the best crowd funding option (No I don't work for them) we've raised capital successfully for clients on the platform.
Once you're operational, a secondary stage option is to use something like www.assetmatch.com to raise funding through the sale of the private shares in your company
Two things rise above all others. First, you must network your way into personal introductions to potential investors. Second, you need a concise pitch that creates urgency among investors to meet personally with you.
Failing to do either is a show-stopper.
If it is capital intensive you may be able to secure funding via Hire Purchase or and Asset Based Lender (ABL). An ABL can advance against plant & equipment so long as there is also a debtor book to fund against. Venture Capital will depend on strength of business case, the management team credentials and likely speed of growth and therefore return to the funder.
I suggest you contact my colleague, Kate Ingham at Alchemy equities. Kate specialises in capital-raising for female entrepreneurs.
You can reach Kate at +61 2 8088 6224 or +61 414 321641.
just sent your business plan to me and I will see and help you or you have a better idea
take care best regards hwie Kwee
Theuri: there is lots of good feedback contained in the responses below. Understand that a VC will generally churn through 1200 proposals in a year. Of those 500 will get face-to-face meetings, 10% of those will get into a due diligence phase, and of those, 10 will make the cut and get funding.
You should try crowd funding - if you're not after mega millions and don't mind spreading the wealth, it's a cool option and actually, happens fast, if your idea get traction. Go to places like Kickstarter or google for options and see which one is the best fit. Good luck to you, Theuri!
Have you thought of Crowdfund. I have a website for you to check out.
I'm inclined to go with a combination of Luke Havard and Ellen Harris have said. Perhaps the best way to get started (and to fine-tune your executive summary of your project) is to sketch it out for our group on Mosaic Hub and invite criticism, correction and capital -- all at the same time. In a best case scenario, you'll find some interested investors [they needn't be venture capitalists, per se]; a realistic case scenario, you'll get some comments regarding your presentation of your idea which will help you improve upon it in order to attract the needed capital. I would be very interested in seeing your basic plan in summary form.