Get Your Business Funded: Creative Methods for Getting the Money You Need

Finding Venture Capitalists

Okay, so now that you know how VCs work and what VC money looks like and costs, the question (as always, it seems) is how do you find them? And again, as with angels, the answer is that a personal introduction works best. There are some startups that get funded by cold-calling or cold-e-mailing a VC or VC firm, but it occurs far less often that you would like. The response rate to this sort of plan is, sadly, near zero.

So your best bet is to locate the VC and firm that is in the proverbial sweet spot for your business, and then work to get introduced to that VC. There are several ways to do this. You start by doing your online research about the different VC firms in your area (most VCs like to invest in projects within driving distance). There are several portal websites that list different VC firms, such as:

• Gaebler.com: Lists VC firms by state.
• The Funded.com: Also lists VC firms.
• PE Data Center: For a fee, you can get access to an interactive database that includes names of partners, deal terms, and investment history.
• VCPro Database: A downloadable VC and private equity directory with profiles of over 4,000 venture capital firms worldwide.
• FundingPost.com: Not only does Funding Post list over 7,000 angel investors and VCs, but it has showcase events across the country.
• The National Venture Capital Association's Online Membership Directory: This database offers contact information and investment preferences (www.nvca.org).

Once you have located ...