You’ve spent hours, weeks, months, preparing and hammering out your winning business plan, getting your financial records in order, and assembling your dream team to lead your new company to the big time. Now it’s time to get in front of venture capital firms. But which business investors do you start with?

It is tempting to use a “shotgun” approach to finding venture capital firms by shooting your business plan to every VC firm in every directory. But you would do better for your new fledgling company by researching and prequalifying venture capital firms before you send them your winning business plan.

What method should you use to target the right list of business investors for your company? Here are some common ways to properly prequalify VC firms.

By Industry

While there are a few VC firms who have a broad range of diversification, most will specialize their investments in specific industries.

Why do most venture capital firms avoid diversification when conventional wisdom calls for investments in many different areas? Business investors are not like stock investors. They find that their investments do better when they specialize in certain industrial niches.

What are the more popular VC firm industries? According to the 2010 MoneyTree Report, the most venture capital money was invested in the following top 5 industries:

1. Software
2. Biotechnology
3. Industrial/Energy
4. Medical Devices and equipment
5. IT Services

But don’t let this get you down if your new company doesn’t fit in one of these segments. The report also listed the following industries popular for business investors:

By Region

Many business investors find that investing in new business in their region work well for them, especially in regions where major business development takes place. Consider the Silicon Valley where literally thousands of software and technology companies have started. Other popular regions include New York, New England, and the Southeast.

But don’t despair if your new business isn’t in one of these regions. There are plenty of venture capital firms in all other regions who like to invest locally. Research the ones in your area and find those that may be interested in your business idea.

By Stage of Business

Many VC firms like to invest in companies in a certain stage of development. Consider these stages:

• Seed financing – Companies needing to perform market research
• Start-up financing – Companies looking to begin production
• First, Second, or Third Stage – Companies open for business who have little or no revenue (1^st), some revenue and other investment sources (2^nd), or profitable and looking to expand (3^rd).
• Bridge – Companies looking to go public within 12 months

Find where your business fits and look for business investors who specialize in that stage of development.

Finding your ideal venture capital partner can be much easier if you know which ones to look for, and know which ones are looking for you.