Not all venture capital firms offer startup capital for your business. There are venture capital firms that are focused on a specific kind of capital, so it is pertinent to research about the capital venture firms that would cater to your needs before you even think of approaching one.

Venture capital firms have specific requirements when an entrepreneur applies for their startup capital services. A great way of increasing the possibility of your business plan getting funded by a VCs is knowing their requirements and evaluating if you would fit into what they are looking for. You could narrow down your VC choices to a specific group that would display high probability of accepting your business plan.

Some venture capital firms would only fund those companies or business within the proximity of their headquarters. If your target venture capital firm has geographical limitations, then you could look for VCs that does not have any particularity on location or you could look for a credible VC within your area.

Aside from the location or proximity requirements, look for venture capital firms that have experience in your field. For example, if they already have an existing and former portfolio company which is in the same field as your future business. You could look in the company’s records if the VC were able to help the business. This would give you confidence that the VC would be able to help you with your business.

But how would you know if the venture capital firms in your area are credible, Ask around. You will be surprised that people in the community, like lawyers and accountants, would know something about the venture capital firms. They can give you information about the personality and experience of the venture capitalists.

Aside from asking around, there are also published materials where you could check their portfolio companies. You could check the company websites or talk directly with the portfolio companies of the VCs. If a VC firm’s portfolio shows that they have considerably great success with businesses that have the same nature as yours, then there could be a probability that they will be investing in your business proposal.

When conducting a face to face meeting with the portfolio company’s CEO or officer, make sure that you would be asking how the venture capital firms would conduct their relationship with them. VC firms would often be a group of investors or affiliates of an insurance company or a bank. You can also ask about the partners of these VC firms.

Do not be inhibited when asking about the reputation of a venture capital firm. Let’s put it this way, if you apply for them, they would surely ask about you and your background. It would be fair enough to learn if they are doing their business well before you go ahead with a business relationship with them. When looking for a venture capital firm make sure that you would working with a firm that maintains a good communication and profitable relationship with their portfolio companies.

Another thing that you could consider would be the assets of the venture capital firm. Even if you are just thinking about applying for a startup capital in the venture capital firm, do not deduct the possibility that you could get an expansion capital or a second stage funding from them.

In a way, it would be beneficial for you since you will be getting somebody experienced following the development of your business.