How early-stage are VCs willing to go; and when should we seek venture capital?
A. It varies dramatically among VCs. Considerations from their perspective include the industry of the company, as well as the experience of the management team. In general, your chances of garnering interest, are greatly enhanced if you can show some form of market validation. One mistake many entrepreneurs make, is to go out on the venture financing road too early. Nearly every VC maintains a deal database, and when they pass on your plan, it gets logged in as a “pass.” Once this happens, it is nearly impossible to get them to take a second look at your plan. Our goal is to work with companies, before they start shopping themselves broadly. The good news is, we do know what funds invest very early, and if need be, we will make a selected few introductions, to test market the waters, before too many doors are closed. We adjust and modify as necessary for future introductions.
