TIP OF THE DAY: Check In With VC Firms 18 Months Before You Begin Looking For Financing

David Millard

Photo: Barnes & Thornburg LLP

Today’s tip comes from David Millard, partner and chair of the business department at law firm Barnes & Thornburg LLP:

Make contacts with venture capital firms early on—I’m talking a year or 18 months before you’re going to them for money.
They like that because they can look at a business plan and then look at the company’s financials in 12 months and see if the company has delivered or over-delivered, in which case they’ll be much more interested.
So make sure you’ve got the right kind of VC, one that specifically invests in your kind of company. Then get a warm introduction and let them hear from you every six months or so, while you’re doing angel rounds. Don’t bug them when you’re just coming out of the garage, but do touch base earlier than you might have in the past.
–David Millard, Partner, Barnes & Thornburg LLP

Read more from Millard in an interview with BusinessWeek >


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