Difficulty: Moderately Challenging
Step1
Make professional contact with the venture capital firm. Walking in off the street, calling or sending an unsolicited email with a business plan does not usually succeed. Find a connection to a venture capital firm to introduce you or, if you don't have such a connection, use an online networking tool like Linkedin.com to make one. Coming to a venture capital firm through a mutual contact will hugely increase your esteem in the eyes of the firm.
Step2
Know your product inside and out. You should be able to give an hour-long lecture as easily as a thirty-second "elevator speech" about what your product is and why the market needs it. If you can't explain your product in both a long speech and an extremely short sentence, you need to get back to the drawing board before raising venture capital.
Step3
Develop an airtight business plan. A business plan is a rigorous document that takes a very specific format. It is generally not considered optional by venture capital firms, so you should have a professional looking business plan, complete with profit and overhead projections, before you go out to raise venture capital. Check out the Center for Business Planning for ideas.
Step4
Find the right kind of venture capital firm. Venture capital firms are divided by size and industry. Look for a firm that fits your project and focuses on the industry in which your product belongs.
Step5
After making initial contact with the right firm, send an executive summary—a one- or two-page document outlining the project's important elements. You can do this by email, but it is also appropriate to send a good-looking hard copy by mail or courier.
