As a co-founder of RockThePost, the leading crowdfunding platform for entrepreneurs, I naturally advocate for startups to get funding via crowdfunding, as it provides several additional benefits that can prove very useful early on.
On the flip side, other options to obtain funding include personally funding your venture, reaching out to friends and family, angel investors, and of course, the world of venture capital. Venture capital is popular among entrepreneurs not only for the money, but also to gain access and tap into the resources that are available through the alliance.
When approaching Venture Capitalists for the first time, it’s important to keep a clear and informed perspective. Every firm and VC has their own specific strategies, philosophies, and attributes they look for when considering an investment, and every entrepreneur seeking to approach them should give thought to these questions before making initial contact:
- Who am I approaching?
- What type of person are they?
- What is this firm’s specialty?
- Who have they invested in before?
- Where are they at in their fund cycle?
- Are they actively investing in new deals or simply reinvesting in their current portfolio companies?
- What is their investing strategy?
- How much does this firm typically invest?
- And most importantly, do I want to have this investor as a long-term partner?