How to successfully raise venture capital in down market
It is normal to be on the borderline after bankruptcy, but fortunately, there are solutions for that considering today’s world and economical situation. If you are considering applying for a personal loan, you need to know this is not impossible, but still, take into account that you become a higher-risk applicant for lenders, even when you know you will be able to pay for your loan, due to bankruptcy remaining in your credit history. There are options to apply for a personal loan, it is just a matter of assuming that the lender may charge higher fees. For this article, the Loan Cheetah team gave us some advice about this particular topic.
Many bankruptcy-friendly lenders might be willing to help you on getting a personal loan, there are many borrowers in the same situation so there are already solutions for the problem. The thing is to get a reasonable fee for the loan. There are still some aspects the lender will take into account to approve or deny your application:
Venture Capital can benefit both, the entrepreneur and the fund, for a start-up because they can be boosted by the capital provided by the investors, and for the business that is financing the project because they gain capital and brand equity. Following this line, this is our first advice:
- Select your investors: Some investors can finance entrepreneurs’ ideas and boost them. Many of them are already known for their job and whether they bet on the project or not. While choosing your investors, try to focus on how involved they are, so you do not lose them during the process of boosting your start-up.
- Focus on your market: Even when the market is declining, you need to stay focused on your vision and why your business will be successful. It is crucial to have a concrete business plan and be ambitious about your project.
- Present your project: Being sure about the way your project will work makes a great impression on your future investors. What is more, you should present your startup’s product development cycle, not only from the very beginning but from the very beginning and above. So your product is worth investing in new hires, talents, and general expansion.
- Inflection point: During your project plan, there should be an inflection point where it is worth investing, show your future investors why it is a Big Fundable Deal.
Venture Capitals, mostly, want to invest in new and disruptive ideas, but others prefer to remain in the comfort of investing in something that is already done, expanding the same market. You need to know that companies like Uber, AirBnB, and Whatsapp were built during market downturns, and there are still investors who are optimistic about startups and see great potential in them.
Participating in the whole network process between funders and VCs is also important, it is suggested to target the right partner at the right firm. When showing your whole project, focus on how your project can be the leader in your market by doing a benchmark, and talking about the competitive environment. Take your time on the most important market things, be brief about the project and be ready for any requests, that is why it is important to analyze the whole project and possible future situation, to see the inflection point so you can also talk about how much money you need to be invested. There is still a chance for startups to grow in the down market, it is just a matter of finding the right funders and Venture Capital to do it real.