Obtaining Venture Capital funding can be difficult if you do not know what the requirements are. Organizations need to first understand their business model and how they can scale their business. Venture Capital firms receive on average 25,000 proposals every year and they invest in less than 10% of those companies. To obtain Venture Capital funding you only have one chance to make a good impression. Companies need to know why they want the money and how they are going to deploy it to increase corporate valuation.
How do I obtain Venture Capital funding?
To obtain Venture Capital funding you have to know how much money you want to raise and develop a business model that is based on realistic numbers. Each company requires a specific and unique business model. Our experience at HafeziCapital has reveled that Venture Capital funding is based on key internal analytics and development of strategic plans that can be defended in front of potential investors. We evaluate the existing business structure, develop ways to optimize it and ensure financial viability.
What drives Venture Capital funding?
The technology is important however it does not drive the conversation to obtain Venture Capital funding. The conversation revolves around financial models, management, and exit strategy. Investors care about valuation, break even points, further capital requirements, customer acquisition costs, competitive advantages, and core differentiators from your competitors. Obtaining Venture Capital funding revolves around making a cohesive and strong argument and selling this particular investment as the investment.
When can I obtain Venture Capital funding?
Most organizations do not understand when they can obtain Venture Capital funding. In general, organizations must prove that their business model has been validated by the market space. The best way to show market viability is by growing cash flow. Start-ups generally cannot obtain Venture Capital funding, unless the managers are proven rainmakers. Start-ups generally must access Friends and Family, and Angel investors to secure their first few rounds of funding. Venture Capital funding is generally used to scale proven business models and accelerate the growth of the organization.
You only have one chance to make a first impression. Developing a strong business model, Executive Summary, pitch document(s) and Private Placement Memorandum (PPM) should be outsourced to a professional team such as HafeziCapital. By allowing an experienced team to look at the organization and provide insight you can increasing your chances in raising capital.
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