Sample Cover Letter for Potential Angel Investors and Venture Capitalists

1
Sample Cover Letter for Potential Angel Investors
and Venture Capitalists

• I'm a strong believer that investors invest in
  people, before they spend money on a business
  plan, or perhaps an idea. But I carry on and
  learn that we now have quite a few additional
  circumstances, maybe not even in connection with
  you or your business, that can stop you from
  getting the funding that you need. You may not
  have complete control over several of these, but
  it really helps to know, for planning purposes,
  what exactly is really happening.
• How to raise venture capital - Venture
  capitalists play the role being an important
  financial intermediary by providing capital to
  firms that might otherwise experience
  difficulties in attracting funds from
  pre-inception to create operations. Subject to
  other items being equal, firms seeking venture
  capitalist backing are usually small but
  typically young and dangerous oriented due to
  their possessing inadequate. New firms normally
  have minimum tangible assets and therefore are
  seen as a a knowledge gap between what are the
  entrepreneurs and investors learn about the
  other. A natural corollary of the, venture
  capitalists finance in solid terms, and seek
  risky oriented projects that have any for big
  rewards. The mode of finance usually necessitates
  the purchase of equity or equity linked stakes
  from such privately held firms. In order to
  minimize the risk and maximize the rewards, the
  investment capital industry has evolved many
  different mechanisms, which to put it
  differently, could be stated because the capital
  raising investing processes.
• First, my advice for initial phase companies is
  always to approach venture capital angel
  investors first (or Angel Investor Groups) until
  you have demonstrated "market validation"
  beginning with setting up a sample or prototype.
  This sample or prototype is often a
  representative creation that has the minimal and
  a lot vital features that show potential
  customers and users what's different about your
  product, and much better compared to what is now
  accessible in the market.
• The first requirement is often a unique business
  idea without which no venture capitalist will
  bother to check out the entrepreneur. A unique
  business idea means the product/service offered
  is unique and is also the only means to fix a
  long-prevailing issue. In other words, it can be
  a products or services that your customers are
  madly trying to find. If there isn't any
  uniqueness, the business enterprise is not
  suitable for growth capital financing. Now, this
  is something which investors will in the end
  decide whether like the idea you aren't however,
  there is something more important that just the
  entrepreneur will have to think about.
• As a CAUTIOUS BACKER or ANGEL, you happen to be
  invaluable inside a new business opportunity just
  as one investor plus an advisor for the
  entrepreneur team or even a start up company. If
  you wish to venture yourself, you have a lot of
  the launch skills necessary. You use a general
  knowledge of the ldquoentrepreneurial success
  scriptrdquo, and most importantly you will find
  the power to undertake start-up activity. Your
  natural reluctance, however, should drive you
  toward acquiring better information to enable you
  to optimize your ldquoeducated guessingrdquo.
  And over time, CAUTIOUS BACKERS may eventually
  become the ldquoINSTITUTIONAL EXPERTrdquo
  entrepreneurial profile type. If where you will
  stay associated with venturing, your presence
  inside venture capital and start-up community
  should invariably be welcome.