If you’re an emerging high growth startup, this blog is for you! You may have been working tirelessly for the past few years, working to help your company realize excellence and success. You may have even hired additional support, and your business is growing. Startups reach a point when it’s time to take the business to the next level, and funding is necessary to do so. Here’s how micro venture capital firms can help, and how you can recognize when you’re ready to pitch.
What is a micro venture capital firm?
Micro venture capital firms, or micro-VCs, are smaller investment firms that fund seed-stage emerging growth companies. The fund is typically under $50M and invest between $25K - $500K in startup companies. Unlike traditional venture capital firms that usually fund between $1M and $5M in later company stages, micro-VCs typically invest less broadly and more specifically within an industry or geography.
4 signs your business is ready to pitch for funding
Micro venture capital firms look for several points of success before taking the next step. While there are many factors a firm may consider, below are few ways you can ensure your business is attractive:
Your business pitch is solid
Meaning, you know who to talk to, and how to portray your business. You have a well thought out pitch, with key points on your strategy, audience, product, and measures of success ready to share with potential firms. Your pitch is vital, because you never know when your next impromptu conversation with a potential investor may be.
You have a strong, strategic roadmap
Firms want to understand the possibilities of scaling your business. A roadmap outlines the short-and long-term vision of your company. Without it, you’ll quickly realize the goals you’ve set are only focused on short-term success. It also pinpoints the important tools, resources, equipment, and applications your business needs now and in the future. Having a roadmap prepared and ready to hand over to the micro venture capital firm you’re interested in gives the firm a snapshot of what to expect and where to invest.
Your business has a healthy forecasted financial performance
You should have a firm understanding of how your hard work will pay off in the coming months and years. Ensuring the accuracy and health of your business’ financial performance projections will not only help you acquire investments and funding; it will help your business succeed. Your financial projections combined with a strategic roadmap paints a clear picture to investors: what your company plans to achieve, how you will get there, and how long it will take.
Your business is capital efficient, and you need to prioritize
Micro VCs can provide the value and expertise your business needs to see continued growth. VCs tend to select companies in which they have background experience to invest in, and that may be exactly what your business needs to fill the gap. Like a mentor to a mentee, VCs can help capital efficient businesses make the best chess moves to win.
If you’re confident in these points and you’re ready to move to the next stage, a micro venture capital firm may be the perfect option.