If you are seeking venture capital for your business, use reasonable numbers in your proposal. At the same time, you must show that the business you are proposing is scalable. That is, it can become big enough to attract speculative funds.
Venture capitalists make money by eventually selling their equity interest to the public on a large scale. They think in terms of hundreds of millions. The business therefore has to grow fast. In a few years.
There has to be what venture capitalists call an ”exit strategy.” That eventual public underwriting or IPO. The faster the growth the better.
But, at the same time, they would like to see their investment risk at the outset be at a minimum.
In the event you get turned down, as you will often be, keep coming back with follow-ups. Few seekers of venture capital are successful with their early attempts. You must be consistent and persistent, and be fortunate to get attention.
I have found that venture capitalists are not all brighter than most in the financial community. Those who have made fortunes at what they do, mostly stumbled upon the big winners. They have been taking unmerited bows the way lottery winners do when they picked winners.
So stick to these basics and keep trying. Good luck counts.
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