The Cutting Edge of Medical Technology Content, Community & Collaboration
7 Tips to Score Venture Capital Backing
Colleagues,
As reported in ENTREPRENEUR ... In the past year, the venture capital funding pipeline has gone from a gusher to more of a trickle...
... With less venture money flowing--and fewer entrepreneurs scoring cash--what’s it take to make the cut? ..
... here are the factors ... VC investors look for.
1. An Experienced Team
In today’s tough economic climate, experience counts for a lot. Many VCs consider a successful track record with at least one previous startup essential... If you have a great idea but no entrepreneurial experience, consider recruiting an executive to your team who would lend you some startup credibility.
2. A Problem-Solving Product or Service
Be clear about the problem your company solves ... Do you save customers money? Time? Be specific about why customers will switch from whatever they’re using now to your offering. VCs often refer to this as solving a “pain point” or difficulty in the marketplace.
3. Assets
Sure, your company needs money. But what does your company offer an investor? Right now, venture capitalists are looking for companies with tangible assets of some kind. If not an existing product, patent, manufacturing process, piece of software or service with an established customer base, perhaps a proven, high-powered management team.
4. Customers
With the economy iffy, one of the most concrete signs of success you can offer VCs is a customer list. They’ll expect you to have at least a few major customers already signed up.
5. Metrics
VCs expect entrepreneurs to know the hard numbers of their business ... One of the most important figures to know: customer acquisition cost. How much does your company spend on marketing, on average, to bring in a new customer? This figure is needed ... be ready to tell investors how much your company could grow from their cash infusion.
6. A Demo
Often, entrepreneurs talk about how exciting their product or idea is when it would be more effective to simply demonstrate ... a dynamic demo beats a static PowerPoint slide any day.
7. A Plan
It may seem surprising, but the VCs report many of the startup managers who pitch them can’t present a clear plan outlining what they would do with the money they’re seeking...
Read on at: http://www.entrepreneur.com/magazine/entrepreneursstartupsmagazine/...
ENJOY!
CC
As reported in ENTREPRENEUR ... In the past year, the venture capital funding pipeline has gone from a gusher to more of a trickle...
... With less venture money flowing--and fewer entrepreneurs scoring cash--what’s it take to make the cut? ..
... here are the factors ... VC investors look for.
1. An Experienced Team
In today’s tough economic climate, experience counts for a lot. Many VCs consider a successful track record with at least one previous startup essential... If you have a great idea but no entrepreneurial experience, consider recruiting an executive to your team who would lend you some startup credibility.
2. A Problem-Solving Product or Service
Be clear about the problem your company solves ... Do you save customers money? Time? Be specific about why customers will switch from whatever they’re using now to your offering. VCs often refer to this as solving a “pain point” or difficulty in the marketplace.
3. Assets
Sure, your company needs money. But what does your company offer an investor? Right now, venture capitalists are looking for companies with tangible assets of some kind. If not an existing product, patent, manufacturing process, piece of software or service with an established customer base, perhaps a proven, high-powered management team.
4. Customers
With the economy iffy, one of the most concrete signs of success you can offer VCs is a customer list. They’ll expect you to have at least a few major customers already signed up.
5. Metrics
VCs expect entrepreneurs to know the hard numbers of their business ... One of the most important figures to know: customer acquisition cost. How much does your company spend on marketing, on average, to bring in a new customer? This figure is needed ... be ready to tell investors how much your company could grow from their cash infusion.
6. A Demo
Often, entrepreneurs talk about how exciting their product or idea is when it would be more effective to simply demonstrate ... a dynamic demo beats a static PowerPoint slide any day.
7. A Plan
It may seem surprising, but the VCs report many of the startup managers who pitch them can’t present a clear plan outlining what they would do with the money they’re seeking...
Read on at: http://www.entrepreneur.com/magazine/entrepreneursstartupsmagazine/...
ENJOY!
CC
Views: 5
MedTechIQ VideoLibrary
Upcoming Events
© 2024 Created by CC-Conrad Clyburn-MedForeSight.
Powered by
