How to Become a Venture Capitalist Today

How to Become a Venture Capitalist Today

All great businesses start small.

AT&T, Verizon, ADT, Texas electricity providers and even Nintendo – they all had small starts going from humble beginnings to the business giants you know and love today and new businesses are being born almost every hour in hopes of striking it out of the park and becoming industry greats like those who came before them.

However, in any country and economy it can be difficult getting your business off the ground and, sadly, without the right amount of hard work, funding and marketing, your dream could be over before it even starts.

But how does venture capital come into play?

Venture capital is financial capitals that is awarded to high risk yet high reward companies that are just starting out.

With the market being as competitive as it is, some new businesses with limited operating history just can’t make the kind of capital that they need on their own, which is how venture capital can really be beneficial to a struggling startup.

Related: The 6 Most Reliable Ways to Fund a Early Stage Startup

However, as a general rule, venture capitalist are usually very selective about the business that they decide to invest in often looking for defining characteristics like new or novel uses of technology, a well-thought out and convincing business model and ways in which their investment will pay them back in the long run.

It is actually estimated that many venture capitalists invest in about one in every four hundred businesses that are up for review. These investments are rare, but not unreasonable – especially when you consider the risk.

5 Steps to Become a Great Venture Capitalist Today

Venture capitalism is a high stakes, high return industry that isn’t for the faint of heart.

Many millionaires have made their fortune using venture capitalism, but many have lost fortunes as well. Venture capitalism is all in weighing your risks and knowing yourself.

1. Become Impervious to Loss

Venture capitalists will take losses as well as gains, and venture capitalists that quit when they’re down will never become successful.

Loss is a part of the game, and everyone will experience a loss at some point.Check out this link here.

2. Build Your Network

Part of being a venture capitalist is about knowing about opportunities that others don’t. In order to be a good venture capitalist you will need to know who’s who in the community.

3. Do Your Research

Many texts have been written about venture capitalism, different strategies, and different scenarios. You should do as much reading as possible straight from the mouths of other capitalists.

Related: Smart Ways to Boost Your Financial Outlook in 2015

4. Get Your Finances in Order

You don’t want to run out of investment money right when an opportunity is getting hot. You also don’t want to play with any money you can’t afford to lose.

5. Diversify

A good venture capitalist doesn’t put all their eggs in one basket. By following different avenues you can increase your chances of finding a winner.

Wanted to add any tips on becoming venture capitalist (VC), do in the comments!

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