How to Attract Venture Capital Investment

By eHow Business Editor

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Venture capital investment is one of the few ways to get large scale funding for a risky startup company. Even the most seasoned teams with the soundest of business plans need to play their game smartly to attract venture capital firms, not just to secure the funding but to get the money at a low cost. If you are trying to attract venture capital follow these few steps.

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Instructions

Difficulty: Challenging

Step1

Network for your company. The first and one of the most important steps in attracting venture capital is doing a lot of business networking. This is crucial to seed the name and idea of your company in people's minds so that you can start to build some buzz. Also, collecting business cards is a sure-fire way of beginning a path that will lead you to venture capital firms.

Step2

Build your team. One of the first things venture capitalists look for is an experienced team that has some business battle scars to prove their worth. Putting together a diverse team and then polishing its credentials is a great way to attract some venture capital. The combined networks of the team members further develops the crucial buzz that eventually leads to venture capital investment.

Step3

Polish your presentation. You must have a smooth, sophisticated presentation that clearly answers all possible questions and preempts challenges with good solutions to bring venture capitalists to the next step. Show your presentation to as many business associates as possible and continue to modify it until it is bringing smiles to the faces of sometimes stern venture capital representatives.

Step4

Get some media. Getting a little bit of media coverage, both in the mainstream media and in alternative online outlets, goes a long way in attracting venture capital. If your business is tech-related, for example, do all you can to get to a high profile tech review site like TechCrunch. Otherwise, use press releases and the PR Newswire to catch the eye of a venture capital firm that might want to take a closer look.