Venture Capital For Dummies

Part II

Becoming Attractive to Venture Capitalists

Five Vital Relationships to Develop Early On

Venture capital may be about cutting-edge technologies and complicated finance agreements, but it’s hinged on real relationships. Until you form true relationships with the other business people in your community, you will be limited in what you can accomplish.

Advisors and service providers: Advisors are high-caliber mentors who volunteer or are paid a small amount to help your company. Service providers are accountants, attorneys, and bankers. Both can help you connect with venture capitalists.

Strategic partners: Partners can be your distributors, local government officials, manufacturers, or others that help you grow your company while preserving your resources.

Customers: It’s never too early to talk to your customers. Include early adopters’ opinions in the design of your final product.

VCs: You can talk with a VC even if you aren’t raising money yet. Try to get a warm introduction ...