Starting a venture capital is not a play thing. There are a lot of efforts put into it and resources pulled together. The surprising thing is that despite these efforts and resources, many people still fail at it. This, however, is not to say that there aren’t people who have ventured into venture capital and are making their marks.
One of such persons who has started and is making waves is Venture Capitalist Ryan Hoggan. Ryan Hoggan is a successful CEO who has become successful in venture capital, entrepreneurship, and eCommerce in the 21st century.
In this post you will see how Ryan Hoggan got started in venture capital and how he has continued to make a name for himself.
Finding Investors: The first step is to find investors who are willing to accept a minute percentage of the overall fund size that is being targeted. Please have in mind that this is not easy to find, but, at the same time, it is not impossible.
Also, remember that a venture capital firm requires a lot of commitment; as such, your investors must be willing to commit too.
Use Your Portfolio Company As Collateral: One thing you can be sure of is that venturing into the venture capital industry would require money. This money is often unrealistic for you to raise yourself.
So, in most cases, you will have to speak with other investors. In this kind of situation, convincing these investors may be slow or not yield the necessary result.
But, one thing you can do is to bring to the negotiating table your ownership stake. This does not guarantee instant funding, but it dramatically boosts your chances at it.
Seek Equity: A larger chunk of venture capital activities—even at an early stage—requires money. This is why you must always make it available.
To do this, you can seek equity funding from your friends and family members who are wealthier. These persons would be willing to give you the money and at a lower interest rate if you convince them properly.
So, this seems to be one of your best shots at getting money with a low-interest rate.
Understand that it is a tiny industry; as such, you must be important and selective: Venture capital is, no doubt, a tiny industry. This is why you must make yourself relevant. Ensure that the best founders pick you.
Most times, it goes beyond winning the deal but about ensuring that those whose deals you won are the great ones. In the long run, this is what counts for you as a venture capitalist.
This does not end there; you still have to be selective. You can’t go for all the founders.
So, this is where you become more selective as a venture capitalist. You also have to choose from the crop of those available, and you have to do this the right way.
All these will help you ensure that you get started on a good note and continue to grow your venture capital.
If you wish to know more about Ryan Hoggan, you can visit his website, where he shares his thoughts on the subject of investment and other areas of interest.
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