VC Consulting: How to Prepare Your Business for the Funding Process

New companies just starting their way on the market need a cash infusion. Small firms can afford to take funds through a bank loan or borrow from relatives and friends. But for large business projects, more sources of financing are needed. Then comes the time for venture capital funding and, accordingly, for VC consulting.

What VCs Look For in a Start-Up?

Investor criteria are changing. Previously, venture capitalists were more focused on revenue growth or the value of startup assets. According to their forecasts, they are investing in companies that will be valuable within 5-7 years. These are industries such as biotechnology, virtual reality technologies, Web 3.0, blockchain, and robotics.

Preparing Your Business for VC Funding

Many aspiring entrepreneurs perceive people ready to inject funds into young projects as altruists. But no one will sponsor even the most promising startup for free.

The true goal of any investor is to make a profit. The person who provides financial support wants to understand why he needs it. Therefore, before asking where to get an investor for a business, you will need to complete several preparatory steps:

• Conducting market research and competitive analysis.
• Decide on the amount you need and the purposes for which the money will be spent. This will bring specifics to the startup development plan.
• Develop an effective business plan and preferably 3 options: optimistic, realistic, and pessimistic. So business investors will be able to calculate the possible risks immediately.
• Prepare the pitch deck. Mandatory slides: idea, market analysis, product advantages, leading competitors, funding ask, and directions for its use.
• Building a solid management team. This is important because intelligent investors focus on team quality as much as a market opportunity.
•  Prepare an investment proposal. Try to fully unlock your project’s potential and show the business’s current state and growth prospects.

Working with a VC Consultant

Like growing a business, investing is a complex process that can take time to understand if you do it independently. There are many different options, and deciding which one is right for you can be difficult. For this, you need the professional help of a company like Waveup, which has an enviable reputation in venture capital consulting.

How to Find a Good VC Consultant

Do your research. Before you start looking for an investment advisor, ensure you understand what services they offer and their qualifications.

Ask for recommendations. Once you have selected a VC consulting company, ask them for contacts of former partners you can contact directly. This will help you evaluate their reliability and potential suitability for your needs.

Navigating the Funding Process

Seeking investment should be treated as a separate project with clearly defined goals and a deadline. Your main task is to pass all stages of negotiations with the investor successfully. How to negotiate?

• Let investors understand that you know your industry and business well.
• Speak in the language of numbers and concrete facts.
• No matter how heated the negotiations are, always remain professional. Be assertive and confident when you state your needs. How you conduct the negotiation process gives an idea of your business management style.

Conclusion

When building a business, remember that this is a long game. Select reliable partners and negotiate openly so that cooperation will bear fruit. Consulting to venture capital will help you find dedicated specialists, partners, or investors and guide you through all the stages of a VC deal.