Tips for Raising Venture Capital

One of the most mystifying processes in the start-up community is how to get to a ‘yes’ from a venture capitalist. Between the often-opaque internal timeline and the seemingly ever-shifting criteria for investing, it’s an understandably frustrating process for entrepreneurs. In addition, the numbers can be daunting, with VCs touting sub 1% rates of funding companies that they see. Although every firm has a different process, most venture firms do share a few commonalities in the way they evaluate investments.   Building trust with the venture firm is the single most important thing that you can do to improve your chances of getting an investment   Despite all of the science behind investing, venture capital investing is at its core at least as much art as science. The idea that a firm will invest millions of dollars in an up-and-coming business with minimal (if any) traction is one of the riskiest bets any investor can make. In addition, with so many talented people trying to create the next success story, it becomes a sea of business plans and big ideas, which ultimately becomes very hard to separate from one another. At the end of the day, the VC is usually betting more than anything on the founders/management team to be a steward of capital and turn one dollar into ten.   How to build trust? Get an introduction from someone that the firm trusts and demonstrate that the team that has executed (and will continue to) execute   Other things have been written about the importance of a warm introduction, but it’s worth re-iterating the importance here. VCs get...