The following is from Ask The VC, where Brad Feld and Jason Mendelson of Foundry Group answer questions related to venture capital investment and startups:
Q: I love your article in the Entrepreneur magazine.
It was very information. Thank you. I am now currently developing the
domain name I had for 9 years to due other business and real estate
investments. Do you have any suggestions which VC wants to
invest? Currently looking for $100k to $250K. I only want to serious
investors only. Also, I want a VC with connections and experience in
helping develop a company, not just throw money into this venture. This
is my second business and so I am familiar with growing a business.
A:
(Brad) I took a look at your website and have no idea what your
business does. My strong recommendation is that lead any email you
send to a prospective investor with a short (a paragraph or less)
description of what your business will do. Just saying that you are
developing a domain name doesn't really mean anything.
In
addition, if you are only raising $100k to $250k, it's unlikely that
VCs are the right target for you. I'd encourage you to focus on your
network of friends and family along with potential angel investors who
are either geographically close to you or are interested in what you
are up to.
But - most importantly - make sure you are stating
clearly what your business is going to do in whatever approach you make
to any investors.
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