Things to Consider When Choosing a Venture Capital Firm

There is something exciting about entering a partnership with venture capitalists. For a start-up, partnering with a venture capital firm is a sign of success. Venture capital firms have capital that injects new lifeblood into the business growth of a start-up company.
Before entering into initial conversations with any of investment firm, a start-up company should thoroughly research all possible venture capital firms. When choosing the right venture capital firm, here are several things to keep in mind:
Consider the Strategy of your investment
First, ensure your company will derive benefits from a VC firm. Normally, venture capitalists bring major changes to the start-up. Terms of such partnership, for example, could warrant a 20 percent ownership in the company.
Go for established firms
Look for reputable capital venture firms that have already experienced success in a specific market. Although this will require you to do in-depth research, finding a venture capitalist that have a depth of industry knowledge will pay off in the end.
Look for perfect match
A good fit between a start-up and a VC firm is multi-faceted. It is all about getting an investor who has had success in your specific market and has relevant expertise.
References
http://vennli.com/6-things-to-know-about-picking-the-right-venture-capital-firm/
https://bothsidesofthetable.com/what-i-would-look-for-when-choosing-a-vc-knowing-what-i-know-now-fbdc67689449

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s