Thursday, January 31, 2008

What VCs Want

What do venture capitalists want? That's a question many entrepreneurs ask me. At the Connecticut Venture Group's January meeting in Stamford, CT, I got to hear ten providers of capital give some answers. Brad Palmer of Palm Ventures said he's looking for recurring revenue models in underperforming companies. Dave Tamburri of Susquehana Growth Equity said he's looking for financial tech, health tech, software and business services companies with $5 million in revenue. Alex Zisson of Thomas, McNerney and Partners wants early expansion companies in healthcare, biotech, medical devices, diagnostics and pharmaceuticals. The list goes on.

As you can see, most VCs want to invest in companies that already are on the road to success. That's why when you start out, it's good to create your own road map, or business plan. You have to figure out what it will take to get started in terms of time, money, people and resources. And you have to be willing to forego a salary and to tap savings, credit cards, lines of equity and friends and family to get off the ground. Then, you have to execute your plan. It's only after you're a going concern that you venture toward the venture capitalists.

If you have questions about your business, I'll be happy to answer them in this blog. Just email me at

For more information about the Connecticut Venture Group, visit their website at:
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