When it comes to investing, it’s standard practice for venture capitalists to do their due diligence in researching, vetting and choosing companies to invest in. But what about the other way around? Venture capital funding actually boomed in 2020: startups raised 13% more from VCs in 2020 than 2019, but woman-founded companies raised just 2.2% of total funds in 2020 – a decrease from 2019.
Throughout the journey of becoming a business owner, it’s likely you, too, have established a professional and personal network of individuals that will have your back no matter what. Utilize this community! When looking for investors, remember you’re not alone. Not only can you lean on the support system that knows you and has your best interests in mind, but you can use them as a sounding board for ideas, constructive feedback, and new perspectives.
Keep your eyes open and look for what *isn’t* there. Investor relationships can have red flags, too. The VC I worked with wanted growth at all costs – I needed the funds at the time, but ultimately we disagreed when it came to our long-term interests and goals. Capital is essential to fund and grow a successful business, but an alignment of values, vision, and philosophy between founder and VC is equally as important.