Getting In To See a Venture Capitalist
"Many people telephone an investment officer of a venture capital fund and try to set up an appointment so they can explain their financial needs and the potential of their company. Most venture capitalists will resist such visits until after they have received the business proposal. Without the proposal, or at least a summary proposal, the venture capitalist has no idea of the details of the business. If you do meet, the venture capitalist will not be prepared to ask intelligent questions. So what is the point of the meeting?"
"Some people show up at the office of the venture capitalist with an inadequate business proposal in hand and want to talk about their business. Sitting in a meeting with them, the venture capitalist fumbles with the papers and stumbles through the business proposal before understanding the situation. Such visits make it difficult to have a productive meeting."
"On the other hand, after reading a sound business proposal, the venture capitalist usually knows if the partners at the fund will want to invest in the business you are presenting. If the venture capitalist (VC) does not wish to invest, the VC can save the entrepreneur a trip to the venture capital company. If the venture capitalist wants to invest, then the VC is prepared to discuss the company in detail when the meeting occurs."
"Some entrepreneurs believe that if they can only meet with the venture capitalist, they can "sell" their idea. This attitude is especially common in cases where the venture capitalist has read the business proposal and notifies the entrepreneur that the VC does not have an interest in investing. I have never seen a "sale" happen in such circumstances."
"Entrepreneurs often believe they can meet the venture capitalist, present their idea orally, and receive financing. A meeting with the venture capitalist cannot substitute for a well-prepared business proposal that has a compelling story. After reading a strong business proposal, the VC knows precisely the type of investment they will want to make, as well as what questions still remain unanswered. For most venture capitalists, then, the business proposal is the turning point in the decision to go forward, to invest time and energy in trying to analyze the situation, and to work out a deal with the entrepreneur."
Read more here.
"Some people show up at the office of the venture capitalist with an inadequate business proposal in hand and want to talk about their business. Sitting in a meeting with them, the venture capitalist fumbles with the papers and stumbles through the business proposal before understanding the situation. Such visits make it difficult to have a productive meeting."
"On the other hand, after reading a sound business proposal, the venture capitalist usually knows if the partners at the fund will want to invest in the business you are presenting. If the venture capitalist (VC) does not wish to invest, the VC can save the entrepreneur a trip to the venture capital company. If the venture capitalist wants to invest, then the VC is prepared to discuss the company in detail when the meeting occurs."
"Some entrepreneurs believe that if they can only meet with the venture capitalist, they can "sell" their idea. This attitude is especially common in cases where the venture capitalist has read the business proposal and notifies the entrepreneur that the VC does not have an interest in investing. I have never seen a "sale" happen in such circumstances."
"Entrepreneurs often believe they can meet the venture capitalist, present their idea orally, and receive financing. A meeting with the venture capitalist cannot substitute for a well-prepared business proposal that has a compelling story. After reading a strong business proposal, the VC knows precisely the type of investment they will want to make, as well as what questions still remain unanswered. For most venture capitalists, then, the business proposal is the turning point in the decision to go forward, to invest time and energy in trying to analyze the situation, and to work out a deal with the entrepreneur."
Read more here.
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For more information, visit www.EvanCarmichael.com. |
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