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  • Shark Tank – Does Your Business Qualify For Venture Capital Funding?

    Shark Tank

    Have you ever wondered if your idea for a business, or if your current business, qualifies for Venture Capital funding or for Angel Funding?

    When I started my last business I was sure that it would be easy to find VC or Angel investors based upon my business plan.

    I even structured the business in a way that would allow me to issue stock options to investors as I found them.

    Then, over time, I realized my business wasn’t VC worthy due to the type of business.

    It was definitely a major let down and from that day forward, I stayed away from the VC world.

    In an interesting twist of fate, I have recently jumped back into the VC world and have begun learning about how it works, the types of business that do and don’t qualify, and the type of information that is expected when giving a pitch to a potential investor.

    I look forward to sharing that information with you to help shorten your learning curve and to allow you to easily maneuver the Venture Capital world.

    This past Tuesday I attended an event called “How To Get Funding From A Shark!” which was moderated by Daymond John from Shark Tank.

    It was hosted by my friend Jeremy Andrews co-founder of http://www.SmartMoneyEntrepreneurs.com, who was also a panelist.

    And on the panel was another friend Alan Brody, founder of http://www.iBreakfast.com.

    One of the things Alan said that really hit home for me was, “Investors have a way of thinking. You need to understand how they evaluate a startup company… [Then] you will understand if you’re fundable, how to make yourself fundable, or how to forget about the fundability issue and go do your own thing, because you can.”

    You can watch the video of Alan, along with several other videos answering questions about obtaining venture capital and working with VC’s here – http://youtu.be/W5_LdzfAGUk

    I wish I would have known someone like Allan 10 years ago, someone who was willing to explain why my business wasn’t VC worthy and to explain my other options, because there are other options.

    There’s also the option to figure out how you might be able to change your business model and make it so that it would be VC worthy.

    On top of all of the fantastic information I learned during the event, at the end of the event I learned a very valuable lesson about the VC world.

    After the panel discussion, and after Alan was done answering questions from people in the audience, I asked him to introduce me to one of the panelists, whom he was friends with, as I was considering interviewing him for the training program.

    When I asked Alan to introduce me, he said, “How do you want to be introduced?”

    The person I wanted to meet was putting his jacket on and getting ready to walk out the door so I said, “I just want to be introduced as a friend of yours. I see he’s leaving, I’ll catch him at another time to talk about the possibility of interviewing him. I just want him to recognize my face next time our paths cross.”

    When Alan introduced me as a friend of his, the person he introduce me to abruptly asked who I was and what I did.

    When I told him, he immediately began harshly dissecting my business, and me, based upon my answers.

    I was caught quite off guard as I wasn’t there to pitch the guy and I hadn’t prepared a pitch as I’ve never had the intention of pitching My Freedom Formula to a VC.

    The lesson I learned for the future was either 1) When around VC’s remember, ABP – Always Be Pitching! And know your sh*t! Or 2) If you don’t plan to pitch, state your intention immediately so that you have control of the conversation and it goes the direction you want.

    In this situation, I would have opted for option number 2.

    When VC’s are in VC mode, their attitude is basically, cut to the chase, bring value to the table, or I don’t have time for you.

    Which I suppose is why they call the show “Shark Tank” vs. “The Angel Tank”. 😉

    It may seem a little harsh, however, when you think about the number of people who approach them to “pitch” their ideas on a daily basis, it makes sense.

    When you’re in that position, you have to separate the wheat from the chaff so your time isn’t wasted.

    I’m sharing this with you in case you plan to attend VC events.

    My recommendation is, don’t approach any of the VC’s until you have your pitch straight, you understand the lingo, as there are very specific terms relating to the VC world, and you’re ready to answer the barrage of questions they’re going to ask you, which are likely going to be asked rapid fire.

    There were a lot of great topics covered during the event and I’ll let you know when the full video is online if you’d like to watch the whole event.

    In the meantime, you can check out the videos I shot here – http://youtu.be/W5_LdzfAGUk

    And you can view photos of the event here – https://www.facebook.com/MyFreedomFormula

    If you’ve enjoyed this story, click the “Like” button below, and share your comments, thoughts, and experience with VC’s.

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    Have a fantastic day! And good luck with your funding goals!

    -Serena

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