The entrepreneurs are initiators, they are bold and risk takers with a pragmatic take on situations, and hence they are perfectly suited to start a business. The entrepreneurial skills extend to realistic idea generation, analysing its feasibility and also getting the funding for the same by pitching the right venture capitalists. The more differentiated and unique the product or service idea conception, the more easy it becomes to get financing for the same. Getting venture capital is not easy unless some smart steps are followed and the person has proper negotiation and business quotient to get the dream come true.

The criteria’s looked for by angel investors

The venture capitalists are angel investors who invest and own a stake in the equity of a start-up company after smelling profit potential in the entrepreneur’s idea, and also generating confidence in potential of entrepreneur to sail of the business idea into reality. These are unlike loans where the interest and principle is repaid in instalments. However, it is a risky affair as the repayment of the venture capital resides in the future profitability and growth of the business. Presenting the business proposal to the venture capital is the primary requirement.

This includes a detailed lists of items of interest to the venture capitalists like detailed business description, SWOT analysis, competitiveness analysis, marketing and advertising plans, operational flow and investments requirement, financial budgeting and projections, growth forecasting, any future plans for IPO as also exit plans if things don’t work out as planned. All the business analysis must be done beforehand and a full-proof plan stands a better chance to achieve funding.

Some tactics to get easy venture capital

Good networking can help find good venture capitalists who can provide the required seed capital for the start-up.  Also, nowadays there venture capital forums where a number of them can be pitched for the best deals. The best possibility to get capital from venture capitalist is when there is a full proof business plan, besides the entrepreneur and his team must be competitive and also have good negotiation skills. Pitching the right venture capitalists is important as many venture capital firms may not be interested in funding certain project ideas. Cold calling is a big no-no as there are many people who call the venture capitalists daily and dealt with the business start-up information which gets a lower attention and sometimes outright rejection.

Instead, the entrepreneur must personally visit the firm after taking appointment over the phone which can prevent such misfortunes and can easily drive the attention of the capitalists in the project. It is necessary to build friendly relations with the venture capitalists too. Also, professionalism and confidence can help crack the deal faster.

Attractive Websites for the start-up company with the right sections for products and services, contact address, presentations for the idea concoction and delivery framework for the targeting the right audience can get a higher favourableness in terms of fetching interest and also the coveted seed capital.  The business capital requirements must be made clear verbally and accordingly the offers given by the venture capitalists can be negotiated before closing the deal.