In a VC community, there will be the old guards who specialize in investing in companies，business model, industries. The other extreme is “new economy VC” who specialize in backing talented people and the entrepreneurial team only. Then there are the ones in between who are somewhere in between, with a varying spectrum of focus.
Instructions
Difficulty: Moderately Challenging
Things You’ll Need:
- A wide network
- Himility to learn
- Adaptability
Step1
Ask yourself the following regarding your venture:Is it a big market?
- off target in a big market – can still make it
- off target in a small market – dead
- how much will shift to the Internet?
Step2
-What kind of competitive position will you have?
-What makes your products or services unique enough to ward off copycats?
-Can you stake out a significant chunk of your market and defend it?
Can someone reproduce what you are doing overnight?
Step3
Getting a VC doesn’t equal success. Don’t be confused. VC is not a simple process – time-consuming. VCs and entrepreneurs have different risk profile. Entrepreneurs are supposed to embrace high risk and hopefully reap the concomitant high rewards. VCs embrace less risk because they are diversified across a portfolio. Limited Partners who invest in venture
Tips & Warnings
- People have no hesitation paying for a need i.e. when it is raining, people will not take a bus but readily pay for a taxi. The trick is to develop the acumen to identify a need. More importantly, one has to discern between a need and a want / nice-to-have. Better still, the product/service must both fulfill a need and create pleasure.
