Montag, 30. Juli 2007

are YOU venture capital compatible?

5 out of 10 to reasons to invest for venture capitalists are related with the entrepreneurs experience and personality.
this was true in the 80ies when this survey has been done, but still holds when looking at today’s investment scene.

if you want to prepare yourself for funding, take care of the following . * mark personal criteria of the founder. failing more then two criteria gives good chances for not getting financed.

* capable of sustained effort
* knowing your market
5-10 times return for vc possible
* ability to evaluate risk and act accordingly
investment can be sold easily
big market growth
* track record in field of new venture
* ability to express
intellectual property rights protect able

while the analysis was new york focused, expect experienced venture capitalists applying the same in europe. which means: take care of sun zi.

p.s. by the way, why as an entrepreneur not evaluate your potential vc on the same criteria?!

ian c. macmillan, robin siegel, p.n. subbar nar asimha, "criteria used by venture capitalists to evaluate new venture proposals", journal of business ventureing 1, 119-128 (1985) in: venture capital, volume II, edited by mike wright, harry j sapienza, lowell w. busenitz, edward elgar publishing.