That’s GREAT! You have social venture ideas that will, without a doubt, change the world for the better.
The only problem is you need to acquire the necessary start-up funding to help build your new or growing social enterprise.
The question of, “Where can I find social entrepreneurship venture capital firms to get my business started?”, is a common hurdle for many social entrepreneurs. And you’ll be relieved to know that there is a solution to get you past this hurdle!
Many social venture capital firms partner with online startup funding databases as a way to scope out innovative business ideas. They want to be the first to extend financial aid to an idea that will improve the world and also bring in a good return on their investment.
A startup funding database is an online resource that connects entrepreneurs with Angel Investors, Venture Capital Firms and Private Equity Firms. This funding database makes locating these “hard to find” investors extremely easy.
Once you become a member, you can immediately begin “pitching” your social venture ideas to an extensive list of prospective investors. If they find your idea appealing and worthwhile they’ll contact you to learn more about your business plan of action.
FundingSavvy is one startup funding database that has well over 5000 funding sources that can be used to launch or expand your social entrepreneurship projects.
Their database includes investors from all over the world. And each of the investors specializes in industries that fit their tastes. So not only do you have an opportunity to get funding, but you’ll also be able to access the knowledge and experience these investors have in getting a business like yours up and running successfully.
A good funding database will also provide you with educational information that will expedite the process of attaining venture capital.
For instance: FundingSavvy offers two free guides on venture capital. The first is an eBook titled: The Easy Way To Raise Venture Capital and the second, also an eBook is titled: How To Approach And Raise Capital From Angel Investors.
The more knowledge you have that will make you stand out in the crowd of competing entrepreneurs, the sooner you’ll have social venture investment firms, angel investors and private equity firms lining up at YOUR door!
Now that you have a startup funding database like FundingSavvy to get you through the door, it’s up to you to wow and amaze the investors to go with your social venture ideas.
Here are the top 4 things that venture capital firms will be looking for in your pitch:
1) A Unique Idea That Other Entrepreneurs Can’t Easily Replicate – You’re not asking for a cup of sugar here, so you had better have an idea that will position your business as a distinctive industry leader.
Hey, it’s a huge financial risk to invest in a startup. It can usually go one of two ways… The startup fails to gain traction within the industry and flops or it is a diamond in the rough and develops into a thriving business. Be sure to provide a well thought out business plan that will show irrefutably that your social venture idea is the latter.
2) How Scaleable Is Your Businesses Value Proposition – Are there enough people interested in your venture to justify making a hefty investment?
Do your market research to find out if there is a definite need for the services your business will offer. This is information that investment firms will want to know upfront. Things like how big is the market you intend to service, how quickly can this market generate profits for your business and who are your competitors.
3) Show Rock-Solid Market Traction – Before ever considering attracting the interest of venture capitalists, you’ll need to have done a “test-run” or pilot of your product.
You should have an iron-clad system for converting your services into revenue. How many clients do you have ready-to-buy or have already purchased? What is the lifetime value of those customers?
4) Build An Unstoppable Team – A lot of times a great social venture idea with a mediocre team will be less inspiring than an average social venture idea with a solid team of experienced movers and shakers.
If you can convey to investors that your team is fully behind the success of your venture, then it will make it all that much easier for them to join the ranks with their funding.
All in all, it’s not a “walk in the park” to get social venture capital firms to take a risk on new ideas. Most see hundreds of concepts every year and will only make a move on a few.
But by reaching out to as many investors as you can using FundingSavvy or another startup funding database, you’ll be ahead of the competition and raise your chances of securing the funding your social business needs.