How to Show VCs That You Invest in Yourself
Are you an entrepreneur ready to launch your new business? If you are seeking private equity funding from venture capitalists, you will likely receive more attention if you show them you invest in yourself and your company.
When you invest in your company, you show venture capitalists that you have confidence in your abilities and strengths, and that you are taking a financial risk in the success of the company as well. With that type of positive attitude toward your business venture, it helps give you an edge when looking for other investors.
Invest Your Own Money
Of course, one of the biggest ways you can invest in your company is by putting up your own money and assets. That doesn’t necessarily mean you need to sell your home or get a 2nd and 3rd mortgage in order to secure money for your business. However, you can put money from other investments, like selling stocks, bonds, or investment real estate, that can raise liquid capital to help fund your “seed” money.
Not only can you invest money, but also your own assets. Do you have vehicles you can donate? How about a state-of-the-art computer system? Perhaps you even own a commercial real estate warehouse you can use for your business. By using your own money and assets, you gain an advantage in having to use less leverage from other people’s money.
Take Business Courses and Seminars
Not only can you invest money and assets into your company, but you can invest in yourself as well. Do you feel you are well qualified to design and manufacture great products, but are lacking in business administration skills? Enroll in college courses that teach basic business administration, such as accounting and management. You can also find numerous business seminars where you can get great information and training on starting and running a business. Anything you can do to improve your skills and expertise will pay dividends with venture capitalist firms.
If you plan to start a business from scratch and put forth your full time efforts to make it work, do what you can to invest in your business. Invest money. Learn something about running a business. You can be sure that your confidence will shine through and impress the VCs with whom you talk.
Tags: angel investor, angel investors, Find funding, raise capital, vc marketing plan, venture capital, Venture Capitalist









Subscribe to RSS.
April 3rd, 2009 at 5:12 pm
Please, can you PM me and tell me few more detailles about this, I am really fan of your blog…