of Businesses do Venture Capitalists Look For?
Financing from a venture capitalist
is a very good way to get money for your business, particularly if the
traditional business loan route has failed. But do you have the right
kind of business that a venture capitalist is looking for?
Many VCs are looking for unique
businesses that have the potential to fill a highly-demanded niche market,
with no or few competitors. Venture capitalists are far less likely to
invest in a company with lots of competirion, unless you are able to put
a very unique spin on it, and have proven data of why yours is significantly
better than any competition.
If you have a home business,
it is usually harder to attract a venture capitalist. If you have plans
to turn your home business into a brick and mortar business, or one with
a significant presence online, be sure to include that information in
your presentation and/or documentation.