Ask A VC: How To Get Investors Interested

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Venture capitalists play an increasingly large role in growing SMBs in the IT channel, whether the business looking to raise funds is a solution provider or an independent software vendor. But when looking to raise seed funding or the next series of cash, how do companies get face to face with investors?

Getting in front of a VC firm is not so different as trying to get a resume for a job looked at -- personal, qualified referrals are the best route, investors agree.

"So somebody that we know and trust refers you over to them," said Rob Go of Next View Ventures.

Go said building a network in the entrepreneurial community is crucial, because entrepreneurs the firms have already backed tend to be called on as witnesses to potential, new investments.

"I'd have to say the same thing about getting referrals," said Katie Bolin, from venture capital firm Spark. She said it simply makes the process of matching investors with entrepreneurs more efficient.

Go said that referrals are not the only way his company finds new business.

"We kind of think of deal-sourcing as a marketing function of the VC," he said. "So just like marketing, there's a bunch of different channels, and we work all the channels."

Paul Flanagan works for Sigma Prime Ventures, which make deals for Series A investments. He said it's his job to look at who's getting seed funding, then get to know those entrepreneurs.

"The reality is, it's going to be a 6- to 7-year relationship," he said.

"So you want to get to know that person and go, 'Am I really going to enjoy working with this person for the next 6 to 7 to 8 years?' ’ Flanagan said.

PUBLISHED APRIL 15, 2015