Network, network, network. Although Kurt Long successfully raised money for OpenNetwork Technologies by doing a mass mailing, the odds of success increase if you can establish relationships with attorneys, accountants, bankers and others who frequently serve as informal advisers to venture capitalists. Try to get a mentor who has gone through the process, suggests Aronson. Prepare a business plan that is concise, well written, and clearly lays out the opportunity and potential of your product. Make sure you approach the correct VC firm.
Venture capitalists specialize.
Educate yourself about the process. The investment process screening, meeting, due diligence, valuation and closing can take months. Only a savvy entrepreneur who truly knows his business will survive. Many entrepreneurs fail to obtain the venture capital their companies need to grow. In many cases, their failure could have been prevented.