Homework Goes a Long Way in Sourcing Seed Funding for Healthcare Ventures

Recently, a post on the eMed Blog offered key tips for healthcare entrepreneurs who are seeking seed funding.  (Although targeted at healthcare, these tips are also relevant to all entrepreneurs seeking VC funding.)  Tips include:

•   Connect with business owners the VC has already funded – leveraging your relationship with a healthcare business owner who has already been funded by a particular investor can help you gain an introduction and possible referral.  If you’re not sure what VC’s have funded a particular company, check the company’s Web site where the information is likely to be posted.

•    Get to know your favorite VCs – get to know how particular investors think, what they like to see and hear from the companies they invest in.  Go see them speak, attend the same seminars, read their books and Whitepapers, follow them on Facebook and Twitter.  That way, when you get a face-to-face with them, you’ll know what resonates with them and can weave those points into your presentation. 

•    Chase leads that favor the healthcare industry - it’s surprising how many companies will pursue investments from firms that don’t specialize in the healthcare field.  Unless it’s a family member, friend or business contact, stick to the script, and focus like a laser beam on capital investors who have a track record in the healthcare field.

•    Leave no stone unturned - not every investor comes from a classic venture funding field. Business contacts, old bosses, consultants you’ve hired, friends from college, family connections -- all can lead you to key investors who will invest in your company.  It’s critical to get the word out that you’re looking for financing, and then start connecting the dots.

To read the full post, visit: 

http://www.entrepreneurship.org/en/eMed/eMed-Blog/2011/May/Landing-seed-money-five-tips.aspx