if you want to raise venture capital for
your business make sure you already have
the groundwork laid out and you have
momentum and some customers for your
business otherwise you’re going to be
dead in the water they’re going to say
no or they’re going to kill you on your
valuation hi I’m Evan Carmichael I
believe the hunger entrepreneurs deserve
health and today remains in question
from one of my youtube viewers Pablo
Pablo’s awesome is commenting on tons of
videos and he’s been very active so
thank you pablo and i’m excited to be
able to try to give back and help him as
well so he wrote in saying he’s got a
business he’s in the developing stages
he’s got some seed funding he’s already
built it up a little bit he’s had
consistent organic growth after getting
the funding from friends and family now
wants to expand and is looking for
venture capital help him so Pablo I used
to be in the VC business I looked at all
the business plans that came in and
ninety-nine percent of them plus got
rejected the main reason is you have to
make sure that you have some momentum
with your company so it sounds like
you’re beyond the startup stage that’s
great I want to see first that you have
some customers show me that people will
pay you what for what you do make sure
people will spend their dollars on you
doesn’t have to be a lot of money but
they’re spending money with you the
venture capital you want to go after is
expansion I’m not paying you to invest
in your product I don’t want to see rd
cost I don’t want to see huge salaries
for yourself I want to see expansion
what you’ve done works it needs to be
fixed you know there’s some improvements
but it works and you are now ready to
blow this thing up when you’re going
after venture capital it can be a
full-time job you want to look at funds
that are related to what you’re doing
they have had portfolio companies who
have invested in similar types of
companies those are the guys who you
want to target because they want to see
that you can have a serious opportunity
but also you might be able to help some
of their portfolio companies do well as
well when you’re talking to the venture
capitalists you want to show you have a
management team in place people who’ve
done this before if you don’t have the
expertise in-house bring on a board of
advisor bring on people who have some
experience even if they’re just an
advisor you
can leverage their name to help you you
want to show that there is momentum and
traction with your business that people
are paying you for what you’re doing and
you want to show that there’s a serious
opportunity for whatever your market is
if you go in too soon if you don’t have
that stuff ready yet you’re going to
waste your time because they’re going to
say no or if they’re slightly interested
you’re going to get killed on your
valuation you’re going to lose too much
of your business that it’s not worth it
so if you’re ready if you’re at that
point start reaching out and know that
it’s an opportunity cost because you’re
not going to spend time growing your
business anymore you’re going to be out
raising dollars but if you’re not there
yet focus on it get there get people
paying you know some momentum because I
don’t want to see you waste your time
and for those of you watching I don’t
want to see you waste your time either
you have to get to that point try to get
to survival try to get to the point
where you don’t necessarily need the
venture capital it’s great to help you
grow but you could continue on doing
what you’re doing as well then you’re
negotiating from a position of strength
most of the people who came to me
looking for funding had nothing they had
air they had a plan on paper these seeds
will not fund that you have to have
momentum and traction and it sounds like
Pablo is already on the right track but
you gotta make sure you’re making some
revenue that’s the way to start looking
interesting to venture capitalists in
terms of reaching out do your research
find the VCS who have targeted
portfolios who have money to spend and
just email them it’s not hard to get in
front of a VC it’s not hard for them
it’s for you to get their email address
and send them your one pager your
executive summary it’s hard to get them
to say yes so that’s why you want to
focus on those criteria good luck Pablo
thank you again for all the stuff you’ve
done on YouTube all the comments other
likes really appreciate it for those are
watching if you liked this video just
like Pablo please give it a thumbs up
below and I want to know what you have
to think I love seeing your comments
come in let me know what you think about
this video or if you have a question for
your own business I’d love to try to
answer it for you please leave in the
comment section below thank you guys
I’ll see you soon
you
your business make sure you already have
the groundwork laid out and you have
momentum and some customers for your
business otherwise you’re going to be
dead in the water they’re going to say
no or they’re going to kill you on your
valuation hi I’m Evan Carmichael I
believe the hunger entrepreneurs deserve
health and today remains in question
from one of my youtube viewers Pablo
Pablo’s awesome is commenting on tons of
videos and he’s been very active so
thank you pablo and i’m excited to be
able to try to give back and help him as
well so he wrote in saying he’s got a
business he’s in the developing stages
he’s got some seed funding he’s already
built it up a little bit he’s had
consistent organic growth after getting
the funding from friends and family now
wants to expand and is looking for
venture capital help him so Pablo I used
to be in the VC business I looked at all
the business plans that came in and
ninety-nine percent of them plus got
rejected the main reason is you have to
make sure that you have some momentum
with your company so it sounds like
you’re beyond the startup stage that’s
great I want to see first that you have
some customers show me that people will
pay you what for what you do make sure
people will spend their dollars on you
doesn’t have to be a lot of money but
they’re spending money with you the
venture capital you want to go after is
expansion I’m not paying you to invest
in your product I don’t want to see rd
cost I don’t want to see huge salaries
for yourself I want to see expansion
what you’ve done works it needs to be
fixed you know there’s some improvements
but it works and you are now ready to
blow this thing up when you’re going
after venture capital it can be a
full-time job you want to look at funds
that are related to what you’re doing
they have had portfolio companies who
have invested in similar types of
companies those are the guys who you
want to target because they want to see
that you can have a serious opportunity
but also you might be able to help some
of their portfolio companies do well as
well when you’re talking to the venture
capitalists you want to show you have a
management team in place people who’ve
done this before if you don’t have the
expertise in-house bring on a board of
advisor bring on people who have some
experience even if they’re just an
advisor you
can leverage their name to help you you
want to show that there is momentum and
traction with your business that people
are paying you for what you’re doing and
you want to show that there’s a serious
opportunity for whatever your market is
if you go in too soon if you don’t have
that stuff ready yet you’re going to
waste your time because they’re going to
say no or if they’re slightly interested
you’re going to get killed on your
valuation you’re going to lose too much
of your business that it’s not worth it
so if you’re ready if you’re at that
point start reaching out and know that
it’s an opportunity cost because you’re
not going to spend time growing your
business anymore you’re going to be out
raising dollars but if you’re not there
yet focus on it get there get people
paying you know some momentum because I
don’t want to see you waste your time
and for those of you watching I don’t
want to see you waste your time either
you have to get to that point try to get
to survival try to get to the point
where you don’t necessarily need the
venture capital it’s great to help you
grow but you could continue on doing
what you’re doing as well then you’re
negotiating from a position of strength
most of the people who came to me
looking for funding had nothing they had
air they had a plan on paper these seeds
will not fund that you have to have
momentum and traction and it sounds like
Pablo is already on the right track but
you gotta make sure you’re making some
revenue that’s the way to start looking
interesting to venture capitalists in
terms of reaching out do your research
find the VCS who have targeted
portfolios who have money to spend and
just email them it’s not hard to get in
front of a VC it’s not hard for them
it’s for you to get their email address
and send them your one pager your
executive summary it’s hard to get them
to say yes so that’s why you want to
focus on those criteria good luck Pablo
thank you again for all the stuff you’ve
done on YouTube all the comments other
likes really appreciate it for those are
watching if you liked this video just
like Pablo please give it a thumbs up
below and I want to know what you have
to think I love seeing your comments
come in let me know what you think about
this video or if you have a question for
your own business I’d love to try to
answer it for you please leave in the
comment section below thank you guys
I’ll see you soon
you
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