Besides a compelling business plan, what do professional investors look for in a young venture?
The days when a Web address and a few baby-faced programmers raked in millions of dollars in financing are all but over. “Ten years ago if you [didn’t have] much business experience or years behind you, you were potentially able to raise capital,” says Dave Freschman, principal at Innovation Capital Advisors, a Wilmington, Del.-based venture capital firm. “Today you have to have a much more experienced management team.” Approaching professional money managers with a business idea isn’t all that different from going on a job interview. You’re selling a story–in this case, your management team’s ability to turn a rosy business plan into real dollars for investors. And just as most job candidates have their weaknesses, so do management teams. The trick is hammering home the good stuff. See Also: Is Your Great Idea A Real Business? Are You Born To Be A Billionaire? For first-time entrepreneurs, don’t be ashamed to say your squad came from big companies like IBM (nyse: IBM – news – people
