Funding and Venture Capital Guide
Determine Whether Venture Capital is Appropriate
Consider Alternative Sources Of Capital:
- Bootstrapping By Providing Services For Hire
- Relatives
- Friends
- Angel Investors (Former Successful Entrepreneurs In
The Industry)
- Corporate Partners
- Equipment Leasing Firms
- Banks
Find the Right Firm - Ask the right questions
- Stage Focus - e.g. Does the firm invest in companies
that have not achieved revenue yet?
- Geographic Focus - e.g. Does the firm invest in
companies in the Southeast?
- Industry Focus - e.g. Does the firm invest in
Internet companies?
- Size Of Investment Criteria - e.g. Does the firm
invest as little as $500,000?
- Return On Investment Criteria - e.g. Is the market
large enough to create a 40% annual rate of return for investors?
- Investment Style - e.g. Does the firm like to take a
roll-up-the-sleeves, "hands-on" approach or a passive advisory approach?
- Sizing up the firm:
- Do they bring value?
- Are they experienced?
- What is their track record of supporting other
portfolio companies?
- Have they been through difficult as well as good
times?
This example represents only a small fraction of the
overall Funding and Venture Capital Questionnaire which is included in the download.