How to Attract VC Investors??

Investors want big ideas. Ideas that can change the world. Ideas that change our behavior, culture or way of thinking. Ideas that can build $100-million-size companies. Anything less is too speculative. The risks of investing in a company are so great--and the chances of a reward so small--that investors can't afford to bet on opportunities that won't surely have huge payoffs.

And one of the biggest problems when addressing opportunity is "Am I too early?" Investing in a huge opportunity five years before the market will recognize and embrace it is a very frustrating thing. Not only will you lose your investment, you'll have to suffer the extreme frustration of watching someone else make a lot of money on the foundation you helped build.

One should have a good business model & should analyze the situation properly. Will the numbers map out? In other words, once someone takes a sharp pencil and starts tracing where every revenue dollar/rupee comes from and then seriously challenges every expense it'll take to generate that revenue dollar, will you have:

    * a profitable model?
    * a repeatable model?
    * an expandable model?
    * a predictable model?
    * a defensible model?

Many an entrepreneur fails because they don't know how to do this type of exercise with a "real world" view.

Well, there you have it: the latest and deepest thinking from a sample of professional investors. How do you and your company match up? If you were honest and found areas that were lacking, please find someone who can help you fix them before you approach anyone to invest. Your extra investment of time will significantly improve your chances for funding.

There are lot of factors that VC's are interested in, But Marketability of Product or Services stands right on TOP of the list. If you can convince them that the product is targeted to specefic segment of market and there is lot of potential for new entrants to enter that market, then they will definitely think about funding it.

 ROR and Initial investment are the two main pillars which makes the IDEA worth a try.

Although there are many ideas used to attract VC's But comparison factor is the most important idea for VC's investment. We just shows the comparison return of past investment results in VC with others. Almost all investors eager to join market just make another comparison with "Inflation v/s Short term Return from any other scheme"  & "Inflation v/s past return from VC investment" then they will definitely think about funding it & be the part of Future high returns........

Customers. Contrary to putting the emphasis on the team or the revenue numbers, there seemed to be a new emphasis on the customer:

• What compels them to buy this product or service?
• What problems does this product or service solve? Why is it better than the alternatives?
• Why is it worth the price?
• Does it compel you to tell others about your experience?
• Are your customers asking if they can invest in your company?

Team. The team is still an important part of the equation, but the entrepreneur is just as important. Here's what the investors are looking for in both:

• Passion: The entrepreneur must demonstrate a contagious excitement about their vision for the company.
• Tenacity: The entrepreneur must prove they have the stamina and willpower to stay with their vision through thick and thin.
• Flexibility: The entrepreneur must be willing to reevaluate and refocus their plans when things don't work out as anticipated.
• Commitment: The entrepreneur must be willing to invest enough of their own money into this project to convince investors they're serious.
• Teamwork: The entrepreneur's team must prove they can work effectively together.
• Coachability: The entrepreneur and their team must be coachable. No team knows everything they need to know to succeed.
• Knowledge: Investors prefer to back teams that really know their market by having backgrounds that are rich and impressive in the market niche for which the company is engaged.

Opportunity. Investors want big ideas. Ideas that can change the world. Ideas that change our behavior, culture or way of thinking. Ideas that can build $100-million-size companies. Anything less is too speculative. The risks of investing in a company are so great--and the

Business Model. Will the numbers map out? In other words, once someone takes a sharp pencil and starts tracing where every revenue dollar comes from and then seriously challenges every expense it'll take to generate that revenue dollar, will you have:

• a profitable model?
• a repeatable model?
• an expandable model?
• a predictable model?
• a defensible model?

what an idea Madamji :-)..jokes apart...ideas matters...its innovation that counts....make powerful presentation of ur project....& market it passionately...get obsessed wid ur idea...u'll get the result...

I think apart from a good business proposal what counts its the person him/herself who has come to seek the VCs. He/should be looking resourceful, persistent, hard working & most of all passionate about the idea with a clear cut & well calibrated business model.

Quality education, relevant industry knowledge & any experience gained in similar business, though at whatever level; will certainly add value to such an endeavor I suppose.

Funds are life of business .It is not only technology that is power ful &will drag the fund . Trust association are the factors that too play dominant role . Start up business has to struggle to overcome lot things & vc and fund on borrowing basis flows only if projects are technicall approved , market tie ups and dedicated business is assured or lined up . Thrust of technical standings is very necessary .if you observe market trend ,assured and repetative business is carried out . Business could be pool / group of people that operates . For projects Principal technology , area of application , repetative nature of business ,continusous business strength , potentional to face future challanges ,profit margines , govt and legal regulations are all important factors . Real heros are those who turn around the Vc into permenant stake holder for the company.Business does not mean loan .

In today competitive world every corner a human being is provoking a Idea it generates through their thoughts, mind and surrounding environment, but they lack the platform to excel it, u may say because of lack of finance, infrastructure, or non continuity of there thoughts.... So taking the former point into consideration the bridge of finance is fulfilled by Venture Capitalist or Private Equity firm. In order to ensure  proper finance U need to have a proper idea, thought a concise future plan of the business. they do help in funding but take the efficient part of your profit... so greed them either through money, returns or business prospects, because at the end u grow they grow!!!

There are lot many Market Intelligence companies (I am marketing for my self :) ) to do some great reports for start up for the purpose of approaching VC. VC wants to see the future market trend and the start up's position in future market. So, the consultant would clearly analyse the things in better way to attract the VC. Soon I can also send you a white paper on this topic (I am preparing it).

Vijay

hi friends I m Manish Pawdia. And i m a Hardware & networking Professional.....& Mcse Certified Also and i have so talent & everything but i have no job why i m asking you all of them......

 beacuse i have no money for bribe only talent & knowledge & excperience.................