When do you reach out to VC and how do they help?

PRGuyDCPRGuyDC Posts: 20subscriber
edited November 2016 in Startup Funding
So say you are a start up and you are building a product. Do you call them from the yellow book (locals first) and try to find someone to take you in? What do you tell them?

Is there a website where you can go and pitch yuor idea and VCs call you?

What can VCs help you with beside money? do they always have contact?

Do you have to have high sales or do you need to be in prototype? which is better?
A startup Tech Guy who is getting is starting PR on the side with mentality, you pay only if covered.

Comments

  • msgin015msgin015 Posts: 5subscriber Member
    There are sites online, JV (joint ventures) sites, angel investors, others that have financing available. Do a search online and join their forums, interact with them, see who's looking for what, mention your plans and somebody may be of help.
  • kathyyuenkathyyuen Posts: 7subscriber
    PRGuyDC wrote:
    So say you are a start up and you are building a product. Do you call them from the yellow book (locals first) and try to find someone to take you in? What do you tell them?

    Is there a website where you can go and pitch yuor idea and VCs call you?
    You can always try Kickstarter for international reach of funds . besides that attending local startup conference/program is another great way of reaching out to VCs. In my country. we have seed funding that is catered for startups where people can fund their ideas
  • keystonefinancialaukeystonefinancialau Posts: 2subscriber
    Venture capital can help you not only in terms of funding your business but also advice on how to grow your business further. It depends on where you will acquire your VC but most of them requires a contract.
  • Gregory101Gregory101 JacksonvillePosts: 51subscriber Bronze Level Member
    You might as well use flying donkeys: it doesn't matter, because there's no VC who's going to read an e-mail that is coming in over the transom.

    My suggestion is to approach VC's via a mutual acquaintance, a recommendation or a LinkedIn contact.
  • McCandlessMcCandless Boca RatonPosts: 52subscriber Bronze Level Member
    1. Have a strong network. A warm introduction implies that you and the VC have someone in common who you both trust. Tough to do without a strong network. Building up that network is outside the scope of this post though.
    2. Reach out to your connection in common. Just be normal. Again, the implication here is that this is someone you have an existing relationship with. Sit down (or pick up the phone, or send an e-mail) and talk with him. Explain your situation. Ask for their advice and help. Assuming they're a good connection, they should be happy to help.
    3. Make the ask. Assuming your connection wants to help, just ask them to make the intro to the VC for you. Offer to write an intro letter that they can forward on. Make it as easy as possible for them.

    That's it. What to actually do once you have the connection to the VC is a completely different post. The opt-in intro is outside of your control, as that's on the referrer.

  • startupfounder1startupfounder1 Posts: 4subscriber Member
    VCs help you to build your small business or startup into a real company, often by leading and/or initiating financing rounds which then finance the "real" market entry of your product or service. Also they help you with advice. But not always "large" venture capital is required and you can also find a few private investors to start your business - e.g. if you're 100% what you want to do and where you want to take your startup . It may be better because you have more control. I have so far made good experiences with the Angel Investment Network - angelinvestmentnetwork.co.uk/network and vcfindr - vcfindr.com. They both worked for me to get in touch with private and corporate investors ...

    Investors and venture capitalists target different stages of a business. You should try to find investors that seek your business stage, e.g. concept, startup or growth stage.
    Hope this helps you.
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