Q: How can I research a venture capitalist?

A: A venture capitalist typically has a preferred industry, region of the country, investment size, and stage in a company's development.  Attorneys and accountants can often refer you to venture capitalists they know or have worked with.  Extensive information about individual venture capitalists is also available on-line.  Once you find several candidates, it is advisable to research them thoroughly, including their past performance record and any referrals and recommendations from past clients.

Q: When should I approach a venture capitalist?

A: Timing well your approach to a venture capitalist is important.  As in any type of financing, you can get venture capital most easily when you need it least.  Courting a venture capitalist takes a great deal of time and effort, so it should be done when you and other key members of the management team do not need full attention on the company.  Some good times to look for a venture capitalist may be (a) at year-end, when you have an audited financial statement to show, (b) when a major contract which could substantially increase revenue is pending, or (c) when your company's financial performance is good or improving, rather than in a downturn.

Q: What can I expect in my first meeting with a venture capitalist?

A: Ideally, your first meeting with a venture capitalist should occur after you have been introduced by a mutual contact that can vouch for you and your company.  This referral can enhance your company's credibility, and your chances.  You will need to make your proposal at this meeting, so you should consider carefully what you will say, and rehearse it.  You will need to impress the venture capitalist that he or she can help your company grow, and that it can make money for him or her as well as for itself.