Venture Capital: What You Must Not Do When Inviting Investors

venture capital

Venture capitalism is where capitalists invest in a business that is just starting up. If you are an entrepreneur choosing this route than borrowing money from a bank, you have to do everything it takes to get as much capitalists, like Christopher Nohl, as possible.

Apart from the things you have to do when inviting investors, you also have to know what are the things you must not do when encouraging investors to invest.

To make your invitation successful, it is highly recommended that you find ways to make the investors invest and avoid anything that would make them go away and block you.

To give you ideas on things you need to avoid, read below:

  • Going beyond professionalism

Make sure that all conversations that will transpired during your negotiation can showcase your professionalism. You have to ask questions that are only relevant to your business. Do not push them too hard, you need to give them time and space to think. You need to present yourself the same way you are presenting your business. You are inviting capitalists to invest in your new found business, hence you really have to impress.

You are a reflection of your business hence you have to be serious and careful when introducing yourself.

  • Leaving questions and inquiries unanswered

When a question is asked, may it be through email or sms, make sure to return to the investor the fastest time possible. Do not let them wait, as making them wait can indicate negatively on your business.

If they ask a question, answer it in the fastest and soonest manner possible. For sure, your partners would like immediate answers, it is their right anyway.

During your business start-up, you have to sacrifice a lot of your time. Making yourself available all the time is a responsibility you have to take.

  • Providing false information and falsified paperworks

You have to make sure that all information you will provide your investors are true and not falsified. Your investors, especially those who are very careful and experienced, would find their way to find out the trust, hence if you break a false information, they would know for sure.

you need to present to them true and legitimate information or else, they will turn their back on you in no time. Capitalists would really appreciate if you tell them the truth, nothing else.

  • Overcommitting

Do not overcommit as this will backfire on you if it did not happen. You do not need to overwhelm your target investors with promises that you are not sure if you can keep, as what they need are facts and data to prove your claims. They understand that in an investment, there are risks, so you do not need to sugar coat.

Commit what you think is bound to come true and not those that are far from the reality. And besides, investors know what “too good to be true” means.

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