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Venture Capital Firms

Venture Capital Firms (VCs) provide venture capital funding; a method of financing that startup companies and small businesses use to raise capital in order to launch an idea or to fuel the growth of an existing company.

Locating Venture Capital Firms

Locating venture capital firms is a fairly simple process. You can easily use The Invstor.com Network to find a wide variety of venture capital investors who fund businesses ranging from "Biotech" to "Automotive". These sources of capital aren't difficult to locate, but we highly recommend that you do your homework before making any attempt to contact them.

You don't want to blow it because you didn't take the time to do some thorough research! Read below to get a better sense of how the funding process works.

How Venture Capital Financing Works

A venture fund is a pool of capital raised with the ultimate goal of making investments that reap high returns. A fund is started when the partners reach out to high net worth individuals and financial institutions to raise capital for the venture fund.

Occasionally, the fund managers will throw a little bit of their money into the pool as added assurance to these outside investors. Investors tend to feel more confident when the person managing the fund has some of "his own skin" in the deal.

Landing Venture Capital Financing

There are many ways to reach out to VC firms, but no matter which one you choose, be concise! Venture capitalists get pitched on dozens of ideas every single day. Be respectful of their time or they may not even take a look at your opportunity.

When you truly believe that it's time to reach out to one of these investors, you're probably wrong! Go back and do more homework! When you've done the prep work, here are a few ways to make the pitch:

By referral - Most venture capitalists get their greatest deals through referrals from trusted individuals. This is a great way for them to filter through many of the horrible ideas before they even make it across the VC's desk. The Invstor.com will help you see the contacts that you share with a particular investor that you are trying to reach. Each member profile on the system shows you who, in your personal network, is connected to the individual that you are trying to reach.

Shoot over an e-mail - In this day and age, it's a great route to go because it allows the investor to have some time to process your opportunity and get back to you. Don't send an entire businesses plan right away. Limit your initial email to a couple of sentences to see if the investor is even interested. Remember they get tons of pitches every single day and don't take time to read or respond to the long ones.

Use the phone - Try email first, it allows the investor to get back to you at his/her own convenience. If you do decide to call, don't give a long-winded pitch. Get right to the point!

There aren't too many other ways to go about contacting venture capitalists. But, we'd love to hear any creative stories that you may have. Email them over to us at Invstor.com.

Summary
Venture firms are easy to locate, but can be difficult to reach out to in an effective way. Do your homework first, then make the pitch. You'll save both parties a lot of hassle.