Nothing is tougher for a start-up than raising capital. Inability to raise Start-up capital has crushed innovative ideas. As you seek where to raise capital, looking in the direction of Venture Capitalists is a proven sure way to go.

Venture capitalist is one of the very good ways to raise capital as a start-up. Most venture capital firms such as Adlevo Capital, TBL Mirror Fund, Vetica Capital, Riggs Ventures West Africa Limited etc have been life wire to most start-ups. InterSwitch Limited, Rancard Solutions Holding Limited, Pagatech Holding Limited, Solo Phone Holding Limited just to mention a few are examples of firms in Nigeria that raised their start-up capital from Venture Capitalist such as Adlevo Capital.

Getting the attention of Venture Capitalists is a challenging feat but it can be made really easy when you know the right button to hit. But before we it take a step further, be sure your business proposition is worth investing on and has strong profit potential. Venture capitalists only seek ventures that stand a good chance of succeeding because like you already know, they are taking risk and they need to be sure that risking their money into your business will be worth it.

Here are some timeless tips that firms that has been successful with Venture Capitalists shared with us on how to raise capital from venture capitalists.

Be at your Best: You just have to be the best of you, in order words, be confident. You have to be at peak of your performance to approach VCs. If you are not first confident in your business idea, who will? You must be able to look your potential investor in the eye while pitching your idea. You must develop tough skin because you will be turned by many. You must be able to decipher the fine line between confidence and arrogance. Be ready to be turned down but you have to keep at it until they budge
Build Credible Track Record: Trust me, good track record gets you the ‘Yes’ faster than you may imagine. Build credibility. Credibility here stems from past successes. Don’t be too modest to blow your trumpet a little. Put your track records to the fore as you approach Venture Capitalist. They need to be convinced that you are not green. If you have succeeded with little venture, chances are that you are a fertile ground to seed their investment.
Be Willing to Give up Control: This can be tough for start-ups. The title “MD/CEO Founder” can be too much tempting to resist for start-ups and very few start-ups want to relinquish so much stake to an investor. But come to think about, is it not better to own a 30% share in a billion dollar firm that to own 100% stake in few hundreds of thousands firm? Most venture capitalists may demand as much as 80% share in your company but if it’s worth it, why not give it shot! As you knock at the door of a venture capitalist, keep in mind that you must be willing to give up control, at least a sizeable control to get what you want.
Create a formidable Team: This is very key in getting a nod from a Venture Capitalist. It is understands that most people do not want partners in business as a result of bad experiences or ignorance, but to grow a real business that you can involve VCs in, you must have a team. Venture capitalists do not invest in individuals. How succinct your team is increases your chance of getting the desired response from VCs.
Get a rock solid Business Plan: Your business plan is your first selling point. If you cannot create one, contract someone to do that for you. Make the content of your business plan rock solid. Put much emphasis on the financial plan. As a matter of fact, your business plan gives your business 50% boost with the VC. With a rock solid business plan, a venture capitalist can smile at you.
Network with the right People: Sometimes, you may not meet VCs where you think they will be like office or boardroom. Find out where they hang out; where they are in a pretty light mood. The bottom line here is that you must be social and learn to seize every chance to network. A word of caution; be civil and do not strictly network for the sole purpose of getting; that may ruin the entire.
Go Micro: This is very important because most VCs invest in specified niche. Some invest in solely in technology related business, some in agro, some in Education etc. Identify the venture capitalists that are interested in what you are interested in. It saves you a lot of heart ache.
Market Yourself: There is absolutely nothing wrong in blowing you own trumpet so far they are true and you can defend it. You must have the ability to convince a venture capitalist. Never waste a pitching opportunity. The rule of thumb at this point is; get your content rock solid and your presentation wow!
Get the Money: After all of these, the bottom line is to get the start-up capital. The bold to ask for the money you need but you must be SMART at it. Ask for something specific. If you did your homework thoroughly before knocking at the door of a VCs, you should have an idea of what it will cost to start up. You must be able to measure the cost, explicitly breaking it down in your financial plan. The money you demand must be realistic. Don’t under ask because you being modest and do not overestimate your budget because of greed. Be realistic and most of all, give a time line to your budget.
If you thoroughly go through these nine processes, you stand a 99.9% chance of securing start up capital from any Venture Capitalist.

Give it a shot!

Source: http://naijainvestgateway.com/2014/09/raising-start-up-capital-from-venture-capitalist.html