Venture capital is right for you?

I've tried and I gave up. When we started, from High-Tech Merger & Acquisition practice, I thought it only natural to offer finder services for entrepreneurs, venture capital financing. This service is no longer available. Why do you ask? We failed miserably. Our company has successfully developed several small high-tech M & A deals with major retail chains, but as venture turned out to be a very frustrating experience and unproductive.

Unfortunately, many high-tech --Entrepreneurs have finally landed on our doorstep fully from their experience trying to raise venture financing drained itself. Frankly, the process has caused several of these companies to fail. According to industry statistics venture only 2% -3% of the companies seeking venture capital actually successful in receiving funds. Only 2 of 10 of these companies that offer financial return objectives for the venture will receive. Since its failure rate is so high, they areSearch for a 30-1 return on their money in their three or four years time to leave.

It is generally not a good idea to alienate my readers, but the biggest problem that is a business, that they are inexperienced about this whole process. They are generally optimistic about the value of their business, ideas, products or technologies rampant in the market. These entrepreneurs tend to be the inventor or the author of the computer code and is not Sales or Business Developmentguys.

They do not understand the sales process. Finally, the increase in venture capital is the ultimate sales job. This tech-focused people are put off by the venture firms when they make a track record of starting a company and investors are successful. In this case, the venture firms are fighting for their place in line to give you money. I want to talk often with high-tech entrepreneurs who completed only say "a great meeting" with XYZ ventures. You would upset me thatXYZ asked her for a report on this pro forma in that these projections were for a competitive analysis of the key players, etc. You then begin another meeting.

Our entrepreneurs think they are on the verge of landing the big one. My answer is: "How much are you paying for the training at your place." The image that comes to mind when you were a child and were using a magnifying glass to burn ants on an anthill - kind of sadistic torture.

For you Tech --Guys out there, this is not Field of Dreams - If you build it they will come. It is business, and the mantra is - if you sell it, they will come. Get over your bias is not the assessment of the sales go and tap the best available sales and marketing person, you will find on the partnership with you. Create for a customer, a trend that shows more than a few isolated successes. Then go get a major strategic partner that you acquire at fantastic several times. Work your non-compete periodand then you start your next big idea. Go to the venture guys from your newfound position of strength, and tell them in the queue to order your supply of venture capital.

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