So often we find that entrepreneurs are looking for venture capitalists to fund their next adventure. Unfortunately many entrepreneurs do not understand that venture capitalists are pretty industry-specific at least the very good ones are. Why is this you ask?
Well, because even venture capitalists have limited amounts of resources and hundreds and hundreds of deals that people want them to do. They cannot use them all and they want to make sure they get the most bang for their buck; that includes the quickest return on investment for the least amount of capital outlay in the shortest amount of time.
You can see why a venture capitalist’s job is not easy and why it is so important to find the right one that is industry-specific to you or entrepreneurial business plan. There’s really no need to contact venture capitalists, which do not specialize in your industry other than perhaps to ask them for a referral to call, because they are busy and not interested. They truly aren’t and it is nothing personal is simply business.
There’s just not enough time in the day to read all these great business plans by all these entrepreneurs. In fact in my day I have read a number of business plans too many to list over several years and I imagine a venture capital is probably reads that many business plans in a single week. Don’t waste their time and do not waste your time.
You need to make sure they’re industry-specific to your industry ask them if they are interested by phone and if so send them an executive summary, not the entire business plan as it will just become scratch paper or end up at around file. Please consider all this in 2006.
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