How To Raise Venture Capital

This video is about how to raise venture capital, including what venture capital is, why you would want to raise it, and how to go about getting investors to give you money for your business idea or product.

This video by John Crestani was published on Jan 21, 2023.
Video length: 14:50.

This video is about how to raise venture capital.

The speaker, John Christani, shares his experience of raising hundreds of thousands of dollars for his company from venture capital investment companies. He explains what venture capital is and why someone would want to raise it. He also discusses the process of getting investors to give money for an idea or product. Christani emphasizes the importance of raising venture capital for high-growth companies, the benefits of working with experienced investors, and the necessity of funding for businesses with high startup costs.

He also offers resources to help viewers in their journey of raising venture capital.

• Venture capital is a way for people and companies to invest in other companies with high potential.
• Major companies like Procter Gamble, Unilever, and Google have investment funds to invest in new companies.
• High net worth individuals also invest in companies to get a big return on their investment.
• Raising venture capital allows you to build a high-growth company.
• Having more money increases the chances of success for a company.
• Do thorough research on potential investors and their investment criteria.
• Build relationships with investors through networking events, conferences, and introductions.

How To Raise Venture Capital - YouTube

What is Venture Capital?

• Venture capital is a way for people and companies to invest in other companies with high potential.
• Major companies like Procter Gamble, Unilever, and Google have investment funds to invest in new companies.
• High net worth individuals also invest in companies to get a big return on their investment.
• Venture capital funds typically have General Partners (GPS) and Limited Partners (LPS).
• The typical venture fund is $10 million and invests over a 10-year period.

Why Raise Venture Capital?

• Raising venture capital allows you to build a high-growth company.
• Having more money increases the chances of success for a company.
• Successful entrepreneurs like Adam Newman, Travis Kalanick, and Elon Musk have high success rates in raising venture capital.
• Raising money from venture capitalists allows you to work with rich and smart people, making entrepreneurship less lonely.
• Some businesses have high startup costs that can't be bootstrapped, such as space companies or big data companies.

How to Raise Venture Capital

• Do thorough research on potential investors and their investment criteria.
• Build relationships with investors through networking events, conferences, and introductions.
• Create a compelling pitch deck that highlights your business idea, market potential, and team.
• Prepare financial projections and a detailed business plan to show potential investors.
• Be prepared for due diligence, where investors will thoroughly evaluate your business and financials.

How To Raise Venture Capital - YouTube

Special Resources for Raising Venture Capital

• Access investor lists and CRM tools to help with your fundraising journey.
• Take advantage of special resources offered by the video creator to assist with raising venture capital.

Targeting Investors

• Look for investors who have already invested in companies in your industry.
• Use platforms like Crunchbase to find information on companies and investors in your niche.
• Create a list of potential investors and reach out to them.
• Apply marketing principles by targeting people who have already shown interest in similar products or ideas.
• Use an investor CRM spreadsheet to keep track of potential investors.

Utilizing Shared Connections

• If possible, look for shared connections between you and potential investors on LinkedIn.
• Reach out to the person you have a relationship with and ask for an introduction to the investor.
• Use a template to ask for introductions, explaining your company and its progress.
• Build a relationship with the person before asking for an introduction.
• Not applicable to everyone, but can be an effective way to get introductions to investors.

Outreach to Potential Investors

• If you don't have shared connections, reach out to potential investors directly.
• Use methods like email, LinkedIn messages, or Twitter DMs to make contact.
• Make contact with 25 potential investors per day.
• Be straightforward in your outreach and clearly describe your company and its market.
• Include a template for outreach emails in the video description.

Getting a Meeting

• The goal of all previous steps is to secure a meeting with potential investors.
• Explain your story and why your company is a winner during the meeting.
• Highlight why your company has the potential to become a major player in the industry.
• Understand the importance of the meeting in the fundraising process.
• Prepare for the meeting by researching the investor and practicing your pitch.

Section 1: Meeting with Investors

• There are different ways to meet with investors, such as through introductions or cold outreach.
• Venture capitalists are a closed circle of wealthy individuals looking to invest their money.
• When asking for an introduction, about 75% of the time the person will give an introduction.
• From those introductions, about 50% end up booking a meeting.
• Cold outreach typically has a 4% response rate, with one person a day responding to emails or LinkedIn messages.
• About 50% of those who respond to cold outreach actually book a meeting.

Section 2: In-Person Meetings and Closing the Deal

• Having an in-person meeting with investors helps forge a stronger personal connection and shows commitment.
• Meeting in real life has resulted in a solid amount of investment in the speaker's company.
• Even if investors are not located nearby, meeting at their offices or nearby locations helps build a connection.
• Once an interested venture capitalist is found, they will provide a term sheet, which outlines the investment details.
• The goal is to work with high net worth, high-performance investors who are incentivized to help sell the company or create a major exit event.
• Closing the deal involves reaching an agreement on the term sheet and finalizing the investment.

Watch the video on YouTube:
How To Raise Venture Capital - YouTube