How To Get Venture Capital
VC's must invest
Venture capitalists (VCs) are in the business of investing. They actively seek out promising startups because their success is tied to finding and funding high-growth opportunities. While it might seem intimidating to approach VCs, it’s important to remember that they need you as much as you need them.
Every VC firm has a mandate to invest its capital within a certain time frame, often with pressure from their own investors (Limited Partners) to see returns. This means they are always on the lookout for entrepreneurs who present clear growth potential, innovative solutions, and scalable business models.
When pitching to a VC, you aren’t asking for a favor; you’re offering a valuable opportunity. If your startup aligns with their investment focus and you show traction, they’ll be eager to participate. Your job is to position your company as a key solution to the market’s needs and to highlight the upside you bring to the table.
VCs must invest, but they are selective. By doing your homework and tailoring your pitch, you can stand out as a compelling investment for their portfolio.
Who can get VC?
Broadly, VC money follows market trends. For example, 1 in 3 Pre-Seed rounds raised in 2024 were for AI startups.
Beyond that, different VC firms specialize in different industries. Their investments follow an “investment thesis” along certain industries, technologies, business models, and stages. Aligning your business with those investment theses is the core of how to save time and money while procuring the capital your need to grow.
Investors also expect a certain return multiple, depending on stage. That multiple is calculated by the exit proceeds divided by the initial investment. Thus, all VC invested companies are expected to go public or be acquired. Here are typical returns expected, per stage:
- Pre-Seed: 10-100x
- Seed: 10x
- Series A: 5x – 10x
- Series B/C: 3x – 5x
- Series D+: 2x – 3x
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You can raise VC
Raising venture capital might seem daunting, but it’s entirely within your reach. Many entrepreneurs feel like securing VC funding is reserved for a select few, but the truth is, with the right approach and preparation, you can attract investors to your business.
VCs are constantly looking for startups with strong potential, innovative ideas, and scalable business models. If you have a clear vision, a solid team, and the drive to execute your plan, you already have the foundation VCs are looking for. The key is knowing how to position your company and demonstrate the opportunity you offer.
By focusing on your growth story, addressing a real market need, and showing how your business can scale, you can make a compelling case for investment. Raising VC isn’t about luck or insider connections—it’s about being prepared, being persistent, and understanding what investors need to see.