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Many small businesses hardly get past their early stages due to lack of sufficient funds. However, venture capitalists are among the funding options that such enterprises have. Here are crucial beginner tips for raising venture capital:

• Build a model
One needs to build a model that convinces the venture capitalists to invest in their business. Ensure to assess the amount of money the company will require for a reasonable time to avoid another fundraising soon. The model should also have a buffer to take care of any uncertainty that may occur.

• Assess the business position
Seeking funding in the early stages of one’s business raises many questions. The venture capitalist will want to know the position of the business to understand what they are getting themselves into. Therefore, it is critical to assess the company’s status regarding launching the products and services and whether prototypes are available. Finally, find out how much traction has been gained to know the available opportunities.

• Build your story
Businesses have a story behind their existence. Prepare a narrative about the history of the company and how it came into play. Make sure to keep it simple and practice before presenting. Make a presentation to friendly parties and solicit feedback to know what needs adjustment.

• Maintain a list of target investors
When seeking funding from venture capitalists, one needs to have a list of target investors in mind. It is essential to find out the active VCs in their sectors to increase the chances of them buying into the business model. Reach out to friends and other contacts with helpful ideas on available VCs.

• Prioritize and plan the outreach
Once one develops the list of potential venture capitalists, they will need to narrow it down to a reasonable number. They will then have to cull their list to about ten potential investors they feel meet their needs. Once the list is prioritized, it will be vital to research the companies and plan outreach.

• Review
Depending on the information gathered from the research, one knows the outreach alternatives to use. After implementing the strategies, take time to assess them to know whether or not they are working. It will guide in deciding whether to revisit the plan and regroup the investors.

• Build a future fundraising model and choose wisely
Whether or not the process is successful, one learns along the way. Therefore, it is essential to think ahead and build a future fundraising model to ensure you get the right people on board.