4 Basic Steps To Secure Seed Funding For Your Startup

Oftimes business owners would need grants, venture capital or seed funding to start business or grow it as the case maybe. 

Whenever you think of delving into seed funding investors search, you should always take in consideration these few steps to securing that grant you want for your business. 

Get A Business Plan

Whether it's just $50,000 or $50 million, the first thing to having any chance of fund acquisition from investors is to write a compelling business plan. This plan should be between 25-50 pages, and it should include such sections as the company's mission statement, a biographical description of the skill sets and experience of all of the company's principals, income statements and balance sheets, and a breakdown of the specific expenses that total the aggregate funding amount being requested. A great plan is both a starting point and a direct, precise path to business success and adequate funding acquisition.

Ready To Communicate The Funding Request

It's not enough to get a strong business proposal, but entrepreneurs seeking funding, should be ready to communicate verbally the business plan. Whoever seeking venture fund should practice and ensure he/she gain necessary oral skills to verbally elucidate their funding requests. They need to be prepared to explain and justify the amount of funding they're asking for, why it's required, what will specifically be done with the money and why the amount being asked for is an appropriate amount. Venture capitalists and private equity groups, while having astronomical amounts of money to lend or invest, are not willing to fund more than is necessary to start or expand any business entity. So, the people wanting the funding from the capitalists have to really know their numbers inside and out and be rational about their funding requests.

Don't Take No For An Answer

If the first venture capitalist turns down a businessman or a group of businessmen from a company, they shouldn't despair. There are literally thousands of highly reputable and financially resourceful individual capitalists and firms out there in America alone. If one of them says no, the businessmen desiring their funding should simply persevere and contact another and another and another. With enough persistence and intelligence behind their approaches, a businessman will definitely find the amount of funding he requires from a capitalist if his idea and plan are capable of being highly profitable.

Follow Up

It's always important to follow-up after a meeting with a venture capitalist. A thank you letter for them giving their time and advice should always be sent, and a request for a subsequent meeting is always an excellent idea as well. This tenacity and determination will manifest to the capitalist that the businessman seeking his funding is very professional and serious about making his business venture as successful and as profitable as possible.


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