Venture Capital? - Don’t Bother

They say the average Venture Capital firms reviews around 100 + business plans every week. They end up eventually investing in 5 – 10 businesses a year.

That means out of 5,000 business plans or 5,000 companies VC’s see they invest in only 5.

That comes down to 1 company per 1000 business plans that come across their desk.

It means that you will have to work hard to be that 1 company out of 1000.

It also means you may not want to bother with approaching VC’s and going through the whole process resulting in hours of wasted time unless you have a proposal that is well thought out and you have a company and product or service that is a winner.

Remember 1 in 1,000 companies – it’s not a lot so you may be that one. However 999 companies will miss out and find the exercise a huge waste of time, costs and resources.

Whether the statistics are correct or not, the lesson to be learnt is that having that first meeting with a VC means little so don’t put too much into it. It’s when you are up to meeting number 10 that you may have a chance.

In any case getting money from anyone to put into a business that could “go down the gurgler” if you do, is never easy.

So don’t expect VC’s to be any different.

Save yourself headaches and costs by learning early that obtaining funding from VC’s is extremely difficult and the odds may be better with Lotto.

© 2005 StartRunGrow

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