Top Tips for Soliciting Venture Capital Funds

Fund Web Site Research

• Match investment criteria. Each venture capital and private equity fund within the Great Funding Database has developed its own formal “investment criteria” which reflects the fund’s tolerance for risk, average investment size and industry preferences. Rarely do the professionals who manage venture capital funds or private equity funds stray too far from these stated investment goals. As such, it probably will be a waste of time to actively solicit a specific venture capital fund if your company doesn't reasonably match its investment criteria. Read each fund's Web site carefully to learn more about what types of companies are attractive to fund managers.
• Check for conflicts. Most venture capital funds list their current and possibly their past portfolio companies on their fund Web sites. Entrepreneurs should take the time to check a fund's current portfolio list for companies that produce similar products or services or companies that may pose a conflict among targeted customers. While most venture capital funds are ethical in the treatment of confidential and proprietary information, there is no guarantee that your business plan or market strategies won't be shared with portfolio company managers. If you suspect there is a conflict, reach out to other venture capital funds first.

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