Every large company once started as a small corporation and at one point, they also needed additional help to grow. Venture capital firms can help grow your company without burdening yourself with debt. Even with the small element of risk, with the right investor, you can soar your business to greater heights.
All you need is to have the same synergy and vision for your business with the venture capital firm and they will provide you additional support like intruding you to connections and offering invaluable advice. Are you looking for venture capital firms for your company? Here are 6 firms you should consider pitching to.
Early Stage Investors
Much of your company’s growth is dependent upon what you do in your business’s startup phase. Your revenues are limited, the market share is minimal and the sales are at an all-time low. The company is probably still doing market research
There is a possibility for high future earnings and acceleration of growth as there is a possibility of losses and total business failure but with a good venture capital firm, your business will weather the storm. Here are 3 early-stage venture capital investors.
1. Accel
This company has been around since 1983 and was formerly known as Accel Partners. It is famous for investing in companies in their seed, early and growth stage (startups), and has its headquarters in California.
Some of the startups Accel has invested in include Slack, Dropbox, Facebook, Podium, among others. The recent and most notable work of Accel is $575 million investment that was channeled towards Israel and European startups.
This company also offers growth capital for the more established companies.
2. Sequoia Capital
Sequoia Capital was founded 48 years ago and is headquartered in California. This venture capital firm focuses on technology companies, healthcare, outsourcing, and financial companies in their incubation stage, early-stage, and growth stage. Since inception, it has invested in more than a thousand companies, and the total value of these companies combined amounts to 22% of Nasdaq.
It recently announced a fundraiser targeting $7 billion that is set to end in July 2020.
3. IDG Capital
This venture capital firm was founded in 1992 and was the first investment firm to penetrate china. IDG invests in telecommunication companies, Healthcare, Technology, and manufacturing industries. So far, it has invested in over 800 companies and has had more than 150 successful exits.
Some of its investments in Europe and America include Moncler and Ripple, in China they were seed investors of Xiaomi and Baidu and in the Asia-pacific region, they have invested in Gentle Monster and Club Factory.
Late Stage Investors
At this point, your company has demonstrated its viability in the business world. You have positive cash flow and your products already have a considerable market share. If you are positioning your company for an acquisition, here are venture capital investors you should consider.
1. Tencent Holdings
This is a global venture capital firm founded in 1998 and focuses on funding the early stages of the growth stage of a company. Tencent’s industry focus is in fintech companies, Iot, gaming, social networks, etc.
Some of its earliest investments are in the gaming industry. In 2011, Tencent acquired a 92.78% holding in Riot, a gaming developer most famous for League of Legends, and later bought the remaining equity in 2015. Other investments include Voyager Innovations Inc, Enflame, Swiggy, Mining Lamp, among others.
2. Hiventures
This venture capital firm was founded in 1999 and was formally known as Corvinus Investment Fund. Hiventures majorly invests in seed, early and growth stages. The company has run 4 fundraisers so far, with the MFB Venture Capital Program raising the most amount at 64.5 million Euros.
Some of its investments are Xeropan, Growberry, DreamJo.bs and Neticle among others. Hiventures has one successful exit, E Ventor Tech Kft.
3. Draper Esprit
Draper Esprit is a global venture capital firm founded in 2006 and headquartered in the UK. It majorly focuses on tech companies in their seed and growth stages and has invested in more than 88 organizations.
Some of the companies in Draper’s portfolio include Endomag, Getsafe, Mediate, and Socialbakers among others. So far it has more than 30 successful exits.
Active Lead Investors
You don’t always have to pitch to all investors in your list. There are times when all you need is to land one key venture capital investor and the others will approach you. Here are two active lead investors.
1. New Enterprise Associates
This venture capital firm was founded in 1977 and has assets that are over $200 billion in value in their portfolio. NEA invests in companies in various industries and across all growth stages. In 2007, it was the biggest venture capital investor.
Some of its investments include Duolingo, CCP Games, Jet.com, Snap Inc, 3com, and many more. This company has around 360 successful exits.
2. Insight Venture Partners
This private equity firm was founded in 1995 and invests in both minority and majority investments. So far, Insight Venture Partners has invested in more than 300 companies and investments range from Pre-IPO rounds, buyouts, recapitalizations, and growth equity.
Some of its investments include Shopify, Twitter, Tumblr, Workforce, Docker, among others. It has had 100 successful exits.
Pitching to Venture Capital Firms
The hardest part of interesting venture capital firms is creating a winning pitch. How do you convince them that your business will be profitable in the long run? How do you get them to sign the check? For starters, you need to have intimate knowledge of the investors.
Find out if they invest in companies that are in your growth stage and if they have had successful exits. Your pitch should be adjusted according to their knowledge of your particular industry and make sure to pique their interest either by focusing on the problem your company solves or on strong company metrics.
Venture capital firms mostly care about the value you’ll be adding to their portfolio and it is up to you to show them through your pitch. Also, feel free to contact us for more ways to grow faster.