Five startup founders share their views on what it takes to find the best VC that fits your business needs and why you should keep them close even after the deal is signed
When you have a brilliant business idea, you need more than just passion and talent to make it a reality. You would also usually need funding, access to networks and mentors to help you develop your product, build your team and grow your business.
Not every entrepreneur is able to bootstrap and rely on their own resources to fund their business idea. So if you are looking for investors, how do you convince them that your vision and team are worth backing? More importantly, how do you know if an investor is the right fit for your business needs and goals?
Read more: A startup founder's guide to fundraising in 2023
Venture capital firms provide capital to startups in exchange for some equity or ownership. They usually invest in startups at the early stage, where there is high risk, but potentially high returns. VCs also offer their portfolio companies strategic guidance, new connections and operational support.
But not all VCs are created equal. Some may have more experience, expertise or reputation than others. So how can you tell which is the best choice for your business at the time of your fundraising campaign? We ask five founders for their insights.
Jason Low
Jason Low, who is behind Malaysia-based tech company Virtualtech Frontier, shares that when choosing a VC to work with, a startup should determine its criteria. Considerations should include if the VC has deep knowledge and experience in the startup’s industry or market segment, which means its team would understand the challenges and opportunities that the startup faces.
“Consider a firm with a track record of successful investments and exits in similar or related sectors, which will show its ability to add value and support the startup’s growth,” he adds.
Other considerations to have include whether the VC shares the startup’s vision, goals and long-term strategy. “A good VC firm should offer more than just capital; it should also provide mentorship, industry connections and operational support, which will help the startup overcome obstacles and accelerate its development,” says Low.
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