Grounds for refusal - VC Funds

Do not be frustrated if they failed to raise capital from venture capital funds. Only a small percentage of companies do not raise capital from venture capital funds - and in the present context, this percentage is even lower.

Top Reasons rejected by venture capital funds

Ø The agreement is too small - many venture capital funds have mandates - minimum investment is $ 1 million or 10 million dollars, if you are just looking for a small capital, you do not speak.

or New Company - start-ups should go for alternatives rather than venture capital funds, there are specific start-up lenders or investors, or apply for grants.

Lack of income or existing - Look, let's be realistic about it - would you invest in a business that has no revenue established or a business that has 3 years of income. If you have made the profit, even a small profit, showing that venture capital firms. Some have said it 10 times harder for a business to raise capital without revenue.

or too technical - You have the best idea, but unable to express them in plain English (or other languages) to venture capital firms. Remember what Warren Buffet's golden rule - "Never invest in things that do not understand"

To trust or business advisers and Brokers - If you do nothing and rely on consultants or brokers, it will be impossible to raise capital. You have to work with them closely, you must improve your business, writing press releases, consultants or brokers can not do it for you.

or demonstrate that "I need money" - ironically, like venture capital funds increasingly invest in businesses that are sustainable or already well on its way - firms that do not really capital to survive, but the capital to grow or expand. If you can demonstrate that venture capital funds to knock on your door.

When I created my own business for the first time, I was able to finance the business from my own investments - Then I grew my business from $ 0 revenue to a profitable business in 12 months, and had a good growth for the next 2 years. I went to venture capital funds in the first 12 months for working capital and was immediately turned back.
2 nd year in my company, I was approached by other venture capital funds to see how I was, and 3 rd year in business, I was approached by the same venture capital funds that were interested in my business - this was much easier because I was then, after the expansion of capital, instead of working capital.

So, Rule # 1 is always to build your business first, then talk to make it worthwhile venture capital funds - will not lift the first capital and build the business.

Unless your ideas or applications that are truly state-of-art, and there is no shortage of great ideas that have raised funds from venture capitalists, like MySpace, Facebook or Twitters Eve - but all have shown is not a business such as solid as the number of members, the members rate of growth - these are also considered as a business.

Remember, Hotmail was sold to Microsoft - it has millions of registered users - and smart companies can be used for marketing purposes. So when it comes to the company's business, sometimes it's not just the financial aspects, but what can really bring your company and this is the special point.

Some good examples are - maybe your particular web site, has a specific target group of visitors, I have a site with about 20,000 members, but they are all Chinese-speaking investors, for example, there are also some news sites that Hispanics they target niche audience.

Perhaps it is a product or service you are offering, a dear friend has created a mobile franchise automobile maintenance, a small business initially, but a great idea, I saw another activity uses air to wash the car, Once again, a small company, but a very interesting idea that may attract attention from investors even without first revenue .......