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Venture Capital Do's and Don'ts


   

DO:

  • Base the projections on realistic assumptions.

  • Be concise, but complete.

  • Be positive and enthusiastic about your company and product/service.

  • Clearly explain the opportunity.

  • Document how the products are different and better than what is available.

  • Keep trying.

  • Know your minimum deal and be prepared to walk away, if necessary.

  • Let experienced business people read and critique your plan, testing it for clarity and reasonableness.

  • Make a full disclosure of the possible pitfalls as well as the strengths.

  • Proofread carefully to make certain there are no errors in grammar or math.

  • Put together a strong management team.

  • Remember this is a long term relationship.

  • Research the investment criteria of the venture capitalists to ensure that what you offer is what they are looking for.

  • Take time to study and understand competitors, addressing their strengths and weaknesses.

  • Widen your network of contacts to give you more avenues of approach.

DON'T:

  • Avoid answering questions.

  • Focus on the technology (leaving out mention of the market, the competition, the customers)

  • Give up.

  • Have any typos, errors, repetition, junky charts.

  • Make exaggerated claims about the product or the management.

  • Predict you will capture "2% of a billion-dollar market..."

  • Press for immediate decisions.

  • Send the first draft of your business plan to the venture capitalists.

  • Use four significant digits anywhere.

 

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