Re: how to raise venture capital
Remember, venture capitalists are seeking a massive return. Typically the only reason why you're looking for venture capital is because you can't borrow the money from a bank. At present you can get an unsecured line of credit for 10-10.5% and you can get much lower rates for secured loans, ie. home equity, car loans, etc. So, if you're paying a bank 10-10.5% you can imagine what venture capitalists are looking for (remember that they can buy T-Bills, and incur no risk).
Many of the agreements are also lopsided in favor of the venture capitalist.
Nevertheless, the best way to attract venture capital is to remove as much 'risk' from the equation (legitimately of course).
For instance, if you are operating a company as a start-up with, quite literally, zero sales, this would be considered riskier than a company that already has proven it can sell SOMETHING.
At the end of the day, its still going to boil down to selling yourself, you're going to have to convince the investor that you'll get big at the gym after receiving his steroid injection.
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