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| | | BabyFodder
Group: Forum Members
Last Login: 8/8/2006 10:01:57 AM
Posts: 1, Visits: 35 |
| | Hello there. I am currently looking to raise some money for our company. I am not sure how many venture captials should I contact at the same time. Should I just send a email with my business plan to one first and then wait for a couple of days? Or should I just send them all out at once to all the venture captials I found? Thanks Tom |
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| | | Fodder Emeritus
Group: Moderators
Last Login: 1/28/2008 9:05:38 PM
Posts: 101, Visits: 186 |
| | Hi Tom, I'd avoid sending emails blindly to hundreds and hundreds of VCs. You should only contact VC's who might be interested in your company. Do your homework before you contact anyone (i.e., look at their websites!). Once you determine that a VC might be interested in your company, then go ahead a contact that VC. Contact 10 or 20 or 50 if you think you fit their criteria. But don't spam 'em! What you should be asking yourself includes... - Does this VC invest in my type of company?
- Does this VC invest in companies at my stage of development (e.g., revenues and earnings)?
- Do I have a strong management team?
- How much I am looking to raise, what are my valuation expectations, and what will I use the money for?
Assuming your company is "venture worthy," then you can contact as many VCs as necessary. But I wouldn't email a full business plan as a first step. What you should do is make some phone calls! Try to talk to one of the young associates. What you want to determine is "whether your firm might be interested in looking at my company." Keep it objective, avoid using superlatives and hyperbole ("this is the greatest thing ever, and you better invest ASAP!"). If you are unable to get reach anyone via the phone, then send a simple and short email describing your company, what problem you solve, your revenues, your profits (or burn rate), and a link to a website that provides greater detail on your product, company, and team. Do not send emails with attachments, unless a VC has specifically asked for a full business plan. Hope the advice helps, good luck!
Dr. VC
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Cynicism is not an end, but a means to reach objectivity. |
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