What are the requirment to grt capital from a venture capital firm?
What all would i need besides a business plan. I am in texas, so what do i need before i can get my capital. What age and paper work etc. will i need?
- MohammadLv 77 years agoFavorite Answer
1. Obtaining venture capital is one of the most challenging endeavors you will face in your lifetime. In order to even approach a venture capital firm you must ensure that your business has the proper corporate structure, an informative and properly drafted professional business plan and a clear executive summary.
-Determine the state in which you want to incorporate and then visit the secretary of state's website to reserve your company name. Decide whether you will use a C corporation, S corporation or limited liability company (LLC) as your corporate structure. Register your company's articles of incorporation (C-Corp) or articles of organization (LLC) with the secretary of state's website. Obtain an employer identification number (EIN) from the IRS via fax. Draft the company bylaws and hold your first board meeting. You will elect officers, record the meeting in the minutes and set the number of shares of stock (C-Corp) or units (LLC) that the company is authorizing at the first meeting.
-Draft a two to three page executive summary as an outline for the business plan. The business plan needs to include sections on your business model; products and services; markets and size; management and competitors. State your funding request, which is the amount of money you are seeking, on the first page. Once completed, develop a two-minute "elevator pitch." This pitch should be designed to verbalize the essence of your company and capture the investor's attention.
-Develop five-year financial projections coupled with a use of funds section.
-Design a website. Obtain the domain name and choose a hosting center. Use the site to describe the company, its origin and what your company offers.
-Formulate your company's exit strategy. An exit strategy describes to investors the way in which they will get their money back and, more importantly, how they will make money.
-Research lists of venture capital firms and venture forums.
-Negotiate and close the deal. Meet the investor face-to-face. Develop a relationship. Be professional and confident in your meeting. Listen to what the investor wants; they are telling you how to close the deal. Investors are going to try to get the best deal they can. Do not accept the first offer. Negotiate the terms and structure. Have legal and financial business experts assist you with reviewing and drafting your documents.
3. Read more: http://www.ehow.com/how_8375858_venture-funding.ht...
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