5 Tips for Young Entrepreneurs Looking for Venture Capital
For many young entrepreneurs, age can be a detrimental factor. What firm would want to invest in a young person, fresh out of college with no “real world” experience, who thinks he has the biggest idea since the telephone? Though young entrepreneurs may have negative stereotypes pitched against them, there are still benefits to being young, and using those advantages can help reap venture capital for a great business idea.
If you’re a young entrepreneur, here are some tips that can help you and your business succeed.
Create a Solid Plan
Venture capitalists may question young entrepreneurs because their ideas may appear lofty, not rooted in “real life” experience. Overcome this hurdle by translating your idea into a tangible reality. A solid, well-written business plan will help you demonstrate that you have both the creative sense and rational business skills to bring the enterprise to fruition.
Use All Resources Available To You
Are you tech savvy? Do you have wealthy parents? Do you have a car? A computer? A long email mailing list?
Utilize all the resources available to you to the greatest extent. Many young entrepreneurs are computer wizards and can create stunning websites. If you are one, make a great website for your business. Use your social network to promote the company and receive a viral buzz. Ask for a small loan from your parents if they are willing to invest in your bootstrap stage. Use your car to make personal deliveries. Use your mailing list to market your services. Anything at your disposal can be creatively used to promote your business.
When it comes time to meet with the venture capitalists, they will be impressed with your tenacity – and they may find value in the types of “young” and trendy advertising, such as social networks, that you have already successfully accessed.
Approach a “Youth” Friendly VC Firm
While all venture capital firms are looking for good business ideas, regardless of the age of the entrepreneur, there are some that are “friendlier” to young entrepreneurs than others. These will be the venture capital firms that have an appreciation for early stage enterprises, such as:
- Draper Fisher Jurveston
- Kleiner Perkins Caufield & Byers
- U.S. Venture Partners
- Band of Angels
- Accel Partners
- BioAdvance
- North Bridge Venture Partners
- Redpoint Ventures
Join Your University’s Venture Capital Organization
If you are still in college, take advantage of the opportunities available through your campus. Many universities hold VC seminars and forums each semester, inviting industry guest speakers who discuss the current state of VC and how young entrepreneurs can best position themselves for the opportunities.
Stanford students can join the Stanford Venture Capital Club, as well as the Stanford Venture Lab (VLAB), which is the San Francisco chapter of the MIT Enterprise Forum. Harvard students can participate in the Harvard College Venture Capital and Private Equity Club. From the west coast to the east coast, young entrepreneurs in college can begin building their VC repertoire and network through on-campus organizations. Check with your college’s business school for the VC clubs that you could join.
Even younger students, such as ones currently in middle or high school, can even take advantage of opportunities on college campuses. Those in the Bay Area can take part of the Young Entrepreneur Venture Capital Competition held at the Haas School of Business, UC Berkeley. This will not only help build your VC network at a young age, but can offer you funds to attend college.
Your age can certainly be used to your advantage. Capitalize upon the resources in your network to demonstrate that your age is no match for your business savvy.
Tags: angel investors, find angel investors, Find funding, find venture capital, startup capital, startup funding, vc funding, venture capital, Venture Capitalist
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