5 Ways To Get Venture Capital Funding

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5 Ways To Get Venture Capital Funding

These days, there is really no limit on how small or big an idea is, and there is a high likelihood that some outside party will be willing to fund at least a part of its development. There are opportunities to raise money from individuals, as well as sophisticated shops that specialize in funding venture capital endeavors. Below are five tips to help find that capital.

Create Your Business Plan
At the risk of sounding obvious, success in obtaining funding stems directly from how strong the business idea is. The best way to investigate this is to get a detailed business plan together.

Take Advantage of Online Networking
The Internet is proving instrumental in helping small and start-up businesses gain access to capital. The advent of social media platforms, including LinkedIn, Facebook and Twitter, provide opportunities for entrepreneurs and business professionals to learn about each other.

Consider Crowdfunding
An important subset of the online community is the recent advent of crowdfunding. There are dozens of websites that seek to connect individuals with entrepreneurs looking for capital. Kickstarter.com has turned out to be one of the more popular sites and is very appealing for start-up firms, as individuals effectively donate funds in exchange for company merchandise and bragging rights if they help fund a firm that ends up becoming quite successful.

Go Directly to the VC Community
Of course, entrepreneurs who have developed a solid business plan and believe that their idea requires millions in capital from savvy venture capital investors, may want to solicit their advice directly. This can stem from sending them a business plan, or getting in front of local VC organizations where the idea can be presented to a group of professional investors.

Raise Less then 10 lakh
Investing in private and start-up companies usually requires that investors be wealthy. This is meant to help ensure that they can risk losing their money, because the failure rate for venture capital is very high.

source- https://www.investopedia.com/financial-edge/0512/5-ways-to-get-venture-capital-funding.aspx