The idea stage is quite early for most VC firms. Angels may be your best bet but talking to VC's early will build a relationship that may be handy sooner or later.
I recommend you go on the various VC's websites, find out who they are invested in and contact the founder or someone else in the company. See how they have found the experience, what their VC wanted and see if they can put in you direct contact with their backer. Just make sure the company is not a competitor to your idea!
Next best bet are to find who the lawyers and accountants and other advisors are for the VC backed company (or the VC firm if you can find this out. Make contact with them and ask similar questions and favours.
You should read Enterprise and Venture Capital by Chris Golis (4th Edition). It will help you with guidance on all aspects of building a growth company. The 4th Edition is Australia focused but the general principles apply world wide. I am currently co-authoring the 5th Edition, which will be a little more international.
Make sure you spend time with people who have done it before, even if you have to spend a little money, to learn how they did it.
Make sure you have plenty of your own capital in the business because without personal financial commitment, its unlikely any one else will trust you with their money. Cheers Tom
Links:
http://www.tomthemoneyman.wordpress.com
http://www.t3capital.com.au
Sunday, June 1, 2008
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