Steps in the VC Process
I have an idea that I would like to commercialize. At this point it is well researched and I have satisfied myself, that in principle, it will work well. In putting together my business plan and case, I figure I would need to put together prototypes and base calculations in order to sell it to a VC.
Can anyone advise what steps I should expect and plan for when searching out and dealing with VCs in Canada? This is an industrial tool with broad application and marketing potential.
Location specific: Canada
Good Answers (2)
Raymond L.
Founder/CEO, Flow Ventures
Best Answers in: Starting Up (4), Project Management (2), Labor Relations (1), Business Plans (1), Using LinkedIn (1)
Hi Kenneth,
Since you are in Canada I've provided a link to a page of links provided by Ventures West, one of the top VCs in Canada. It will be a good starting point to research what people are looking for. See especially their business plan guide.
I would also urge you to hold off on contacting VCs until a) you are truly ready and b) you have a business that is appropriate for the kinds of deals they want to do.
For (a) I would not only satisfy yourself but put your plan out there to friends, family, advisors and ask them to rip it to shreds. It is a humbling experience but one that will make your plan better. It is a good hedge against believing your own marketing too much.
For (b) do the research to find out what deals VCs in Canada are actually doing. You'll find that there are not that many deals at the business plan level unless you just sold your last tech startup for $50 million. Being realistic will save you time. VC investment may not be the best avenue. There are angels and (gasp) organic growth.
Best of luck on your new venture.
Raymond
Links:
Amish P.
Strategic Innovation
Best Answers in: Starting Up (6), Small Business (3), Compensation and Benefits (1), Offshoring and Outsourcing (1), Internet Marketing (1), Customer Relationship Management (1), Nonprofit Management (1), Manufacturing (1), Positioning (1), Business Plans (1), Franchising (1), Web Development (1), Using LinkedIn (1)
Hi Kenneth,
The common wisdom is to talk to as many people as possible - get to know both the VCs and entrepreneurs they have invested in (and their networks).
As far as what you should get done to make a compelling presentation, you should have completed or have plans for
-a prototype
-intellectual property
-a team
-advisors
-marketing/sales strategy
-customer (or potential customer) feedback
-and, of course, a well reasoned business plan and financials....
best wishes!
