Choosing The Right Venture Capitalist To Work With
"All investment strategies are not created equal: One size does not fit all and there is no cookie-cutter investment strategy. Many companies bootstrap themselves. Others partner with angel investors, traditional venture capital firms or even obtain debt financing. The venture capital model has served us well. But all venture capital firms are not created equal. You don't need money people, you need partners who balance the risks and motivate your team."
"The quality venture firms have reputations for standing with you in the tough times and help you position for future success. Understanding the investment stage strategy of venture firms was our greatest lesson. It optimized our efforts on the right meetings with the best chance of success. Do your homework."
"You are running a business, not a science project: The goal of a company seeking capital is financial independence (at the least) or a substantial exit, an IPO or acquisition (at the most). Experienced investors see right through poorly engineered plans, immature technology and IP, insufficient resource planning, etc. In our case, while there is a lot of market attention placed on nanotechnology, this is not enough. Customers, products, revenue and (heaven forbid) a solid path to profits are paramount. Know your business and your business plan, inside and out."
"It does not end with a term sheet; you better be who you say you are. Capital markets are constrained and investors are conducting ever more thorough due diligence. Even "seed" or "A" stage companies must show a solid value proposition, customer traction and a mature business plan to garner attention. Far fewer companies are financed based solely on technology potential. Investors have every right to find out everything they can about the people, the uniqueness of the IP and the workings of the company. You better be who you say you are, or your deal can easily unravel."
"It does not end with a term sheet; you better be who you say you are. Capital markets are constrained and investors are conducting ever more thorough due diligence. Even "seed" or "A" stage companies must show a solid value proposition, customer traction and a mature business plan to garner attention. Far fewer companies are financed based solely on technology potential. Investors have every right to find out everything they can about the people, the uniqueness of the IP and the workings of the company. You better be who you say you are, or your deal can easily unravel."
"The business, economic and fund-raising climate remains fraught with challenges for startup companies. Do your homework, determine the approach that best fits your strategy, sweat the small stuff, mix in a lot of hard work and the right partners and as we are living proof, it can be done successfully."
Read more here.
"The quality venture firms have reputations for standing with you in the tough times and help you position for future success. Understanding the investment stage strategy of venture firms was our greatest lesson. It optimized our efforts on the right meetings with the best chance of success. Do your homework."
"You are running a business, not a science project: The goal of a company seeking capital is financial independence (at the least) or a substantial exit, an IPO or acquisition (at the most). Experienced investors see right through poorly engineered plans, immature technology and IP, insufficient resource planning, etc. In our case, while there is a lot of market attention placed on nanotechnology, this is not enough. Customers, products, revenue and (heaven forbid) a solid path to profits are paramount. Know your business and your business plan, inside and out."
"It does not end with a term sheet; you better be who you say you are. Capital markets are constrained and investors are conducting ever more thorough due diligence. Even "seed" or "A" stage companies must show a solid value proposition, customer traction and a mature business plan to garner attention. Far fewer companies are financed based solely on technology potential. Investors have every right to find out everything they can about the people, the uniqueness of the IP and the workings of the company. You better be who you say you are, or your deal can easily unravel."
"It does not end with a term sheet; you better be who you say you are. Capital markets are constrained and investors are conducting ever more thorough due diligence. Even "seed" or "A" stage companies must show a solid value proposition, customer traction and a mature business plan to garner attention. Far fewer companies are financed based solely on technology potential. Investors have every right to find out everything they can about the people, the uniqueness of the IP and the workings of the company. You better be who you say you are, or your deal can easily unravel."
"The business, economic and fund-raising climate remains fraught with challenges for startup companies. Do your homework, determine the approach that best fits your strategy, sweat the small stuff, mix in a lot of hard work and the right partners and as we are living proof, it can be done successfully."
Read more here.
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For more information, visit www.EvanCarmichael.com. |
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