Monday, September 19, 2011

Do you need a Venture Capitalist? | Africa Report

You have an innovative idea or product; your business plan is ready; now is the time to get financed. Knocking at a bank?s door is one option, but seeking financial help from will be Venture Capitalists or Angel Investors can be a rewarding alternative. Africa Report tells you how to draw their attention.
Venture Capitalists are not easy to attract. They may be willing to take the risk to invest in your project with less backing guarantees than a bank, but they will want to make sure you are the right opportunity. Be prepared to offer them all what they will be looking for.
Marketing expert and ex-Venture Capitalist Tomer Tzach explains ?You should prepare for a process that can take six or nine months or even a year, depending on the market conditions. You need to prepare for people with little knowledge of your technology or market who are comfortable telling you that there is no market for your technology.?
Brace yourself; prepare your ammos
Don?t be trapped; know all the details about your project and the industry it?s in. Read, Venture Capital Book: An Entrepreneur Guide To Obtaining Capital To Start A Business (?) by David Gladstone?[1] to help you through the process. The author demystifies interactions between investors and entrepreneurs, from the usual jargon to how to present your business. Don?t go for mediocrity or your chance to get financed will drop drastically.
Pick carefully
Tomer Tzach advises to carefully plan how to target which VCs you will contact. In short, make some research prior to contacting them and don?t pick randomly. Surely, there will be venture capitalists closer to your town, your field of expertise or who have already invested in similar projects. Tzach insists: ?I?d recommend beginning the VC outreach process with the lower ranked VCs who are also less likely to invest in your company, so that you can get some practice under your belt, and if you make a mistake, it won?t be critical.? Google Venture Capitalists in your home country or town to start the selection process:
It?s not all about money
Once you get financed, your investor will be checking that he/she gets returns on the money invested. The relationship doesn?t stop once you get the money. You are building a long-term relationship with a potential partner so make sure that you have delimited the boundaries and set the rules. Both sides of the relationship need to agree and walk hand in hand for the business to be a success. Also, make sure that you know when you will need to take the reins and go on your own.
Angel investors and venture capitalists are always looking for new exciting ventures, no matter the international crisis or the decrease in general investment. Make sure that you don?t miss an opportunity by not being ready; it?s up to you to be successful.
Tomer Tzach on Venture Beat
Venture Capital Book: An Entrepreneur Guide To Obtaining Capital To Start A Business (?) by David Gladstone

Source: http://www.africareport.com/business-africa/2011/09/19/find-an-angel-investor-and-get-started/

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