2012 resolution for small business owners: Find venture capital

Over the Holidays I found myself reading those ubiquitous “Best of 2011” and “Resolutions for 2012” articles. If your resolution is to find venture capital this year, here are a couple of articles that might help.

 

“6 tips for raising capital in 2012” caught my eye, not because it was particularly ground-breaking, but because it drilled everything down to six simple steps. The last two, in particular, demand the attention of every small business owner seeking venture capital.

Don’t break the law.
Seriously, don’t do it. When you have a small business on the cusp of becoming something great, there could be some inclination to cut corners to raise funds as quickly as possible. If you’re unsure, speak to your attorney. Don’t risk your business by doing something illegal.

Start the process now.
It takes longer to raise capital than you think. Making contacts, getting paperwork in order and polishing your presentation… all are important. If you want to find venture capital in 2012, start now. It’s best to enter into that endeavor with some sense of urgency.

“Protecting your secret sauce” is a quick and dirty guide about protecting yourself when talking to VCs. The biggest takeaway from the article concerns non-disclosure agreements.

Put away the NDA.
Don’t bother presenting them with a non-disclosure agreement. They won’t sign them and they are ridiculously difficult to enforce. Venture capitalists and those who make it a business to invest see tons of pitches and executive summaries and hear about investment opportunities every day. Some will be similar and it would be impossible keep track of NDAs for all of them.

Financing your business is just one area of concern when you’re starting a business. We make it our mission to make it as easy as possible.  If you need information on incorporating your business, we’re here to help!

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