All companies need start-up money to get off the ground and begin operations. On top of this, since many startups are yet to break even or start making profits, they will need to raise funds to finance their operations and keep their doors open. At this point, many companies bring in outside investors to raise venture capital. Therefore, it is essential to know what all venture capitalists such as Marc Sparks consider before investing their money in a company.
- Unique and Proprietary Services
Companies with nothing unique to offer the market find it difficult to attract venture capitalists. Since investors look for a high return on their investment, a company producing products that are easily replicated is not going to peak their interest. Startups need to offer something unique and of great value to customers to secure funding.
- Proper Use of Sales Data
A company with products in the market should utilize their sales data when sourcing for money to promote their products. Sales data can be used as a proof of demand to sway investors to invest their money.
- Have a Clear Cut Strategy
The third but not the least point is the value of a clear cut strategy. A company needs to show potential investors exactly where and how their money will be used to improve operations. A smooth management system should back a sound business idea and implementation strategy.
In the business world, presentations are everything. Giving investors a detailed presentation of how their money will be used to increase sales is crucial. Since presentations and data sway many investors, companies need to spend time and effort in creating an excellent one.
Additionally, a path with a logical progression of how initial funds will be used is enough to secure more operating funds.
Marc Sparks is a successful venture capitalist and entrepreneur from Austin, Texas. Throughout his illustrious career, Marc has started or supported dozens of successful and not-so-successful startups.
As a result, his 35 years in the industry have made him an expert in the field. He has written a book called “They Can’t Eat You” that reveals his journey from an average high school student to a successful serial entrepreneur.
Marc Sparks has a passion for building companies from the ground. He is known to invest in risky ideas that have a potential for growth and success. He owns a private equity firm called Timber Creek Capital, LP that manages several portfolio companies.
Once he takes up an idea, he establishes an entire company culture around it and develops both long-term and short-term goals. Marc credits his accomplishments to faith, passion, focus, tenacity, a sense of urgency, and savvy monetization.