The moment when a startup start to look for investors to raise money is emblematic. It means that the business has potential to grow stronger and is ready to prove its value now and in the next years. As the beginning may be confusing and stressful, we build a simple guide to start this journey.
The tips listed in this article are inspired by a series written by the technology lawyer and strategic business advisor Daniel Glazer to the Tech City UK website.
What US VCs require to invest in a foreign company?
First, it is important to prove a connection with the North-American market. Without demand from US customers and/or from business partners, or no proof of successful operations in the country, it will be hard to convince a venture capital firm to finance a foreign business. The claim is specially true for early-stage startups.
How to approach VC firms?
A fundamental starting point is to identify the VCs that are most likely to be interested in your business. They will bring expertise in the sector, networks and cash.
To find them, identify who are the VCs doing constant investments in the sector, at companies in stages of development similar to you. It may lead to groups that already invested all the money they wanted and will challenge you to prove your value in relation to other companies in the industry. But it can also bring high-qualified specialists to your side.
Attend conferences, conventions and other where investors interested in your sector are expected to attend. Be prepared to pitch and build a network with specialists and professional advisors.
If it is hard to have a spontaneous meeting with a large investor, book a coffee in advance. Take advantage of trade missions and learning expeditions to enlarge your network. Be strong!