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10 Things I Know About…

Attracting Venture Capital

By Laura Ring
VP of strategic relations for Castile Ventures of Waltham, and recent presenter at the WPI Venture Forum.

As told to Cory S. Hopkins, Worcester Business
Journal Staff Writer.

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10. KNOW YOUR PLACE

Always have a sense of the size of your market, your position in it and your strategy.

9. DON’T EXAGGERATE

VC’s have lots of experience, and know what is and isn’t realistic in terms of projections.

8. SIZE MATTERS

The market you’re going after needs to be significant to attract VC attention – at least $200 million.

7. KNOW WHAT MAKES YOU DIFFERENT

Are you better, faster, cheaper than your competition?

6. KNOW YOUR AUDIENCE

An established company should be able to name the customers they want to target. Startups should know which types of customers they want to sell to.

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5. ACKNOWLEDGE COMPETITION

There is no such thing as “no competition.” If you’re the only one in a certain niche, you won’t be for long.

4. DO YOUR HOMEWORK

Different VC’s fund different types of companies. Find the VC that fits your company, instead of fitting your company to the VC.

3. USE WHO YOU KNOW

Get a foot in the door by asking for a referral from a trusted VC source, such as a prior portfolio client, banker, lawyer, accountant or another VC.

2. DON’T GIVE THEM A REASON TO SAY NO

VC’s are busy and inundated with proposals. Be succinct and articulate, and proofread carefully.

1. NETWORK, NETWORK, NETWORK

VC’s are everywhere at business events. Exchange cards and handshakes, then follow up later.

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