It is easy to imagine that because we are in a recession that raising venture capital is going to be tough in today’s economy. That is not the case.  The Secret is knowing where to look for it.  Money is still out there.  Investors still need to invest to make money.  They are still looking for good deals.  Many are having a harder time finding deals because so many small businesses are afraid they won’t be able to find money that they don’t look.  What are you doing to look for the capital you need to start your business?  Are you talking to the people you meet?  Are you sharing your excitement about what your plan is?  Do you market yourself as a small business owner with a great idea?  These are all important steps to raising venture capital.

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I was listening to a story a friend of mine was telling me the other day and I realized why (again) she is so successful at raising venture capital.  She knows there is always another deal to raise money for.  She talks to pretty much every person she meets about her current project, and she expects that the money will come.  When she is excited about a project or business she is involved in, that excitement fills the whole room.  She is generous with information and is willing and interested in answering all the questions put to her.  This is a straightforward technique and it works.  She took some folks out for dinner once, quite a few actually, and paid for their meals as well as telling them all about her current project. Get this, she didn’t’ ask for money.  What she did do was explain her project and share her excitement.  After the party, several called her up and asked if there was an investment opportunity in the business.  Now, she didn’t just ask anybody to dinner.  She asked people she thought were qualified to make investments and would be interested in her product because they were in a related field.

There were a few other tricks my friend used to get all these people to come to her dinner, but my point is she shared her excitement and information about her project.  She asked people to come, and she marketed what she was doing.  Investors can’t help you if they don’t know you exist.  How will you go about raising venture capital for your business if no one knows you are out there?

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