Startups and businesses still in their infancy will often struggle to find the financial structural backing that they need in order to get out of the gates with a running start. As a result, many of these businesses will turn to venture capitalists to make their funding goals a reality.
By partnering with a venture capitalist, businesses can acquire an influx of cash and an infusion of resources that helps them get their businesses off the ground. As an experienced investor, Mark Hauser took time to outline some of the key principles that he pays attention to when working with his team at Hauser Private Equity.
The Right Funding Stage
First and foremost, businesses need to understand what they are looking for when they try to find a financial partner. Venture capitalists work by targeting a few specific forms of businesses. Let’s outline them below.
Seed Stage businesses need a stable infusion of cash to help get them off of the ground. During the seed stage, businesses are still forming the nucleus of what they are trying to accomplish. Investors play a pivotal role even if their financial infusion is small.
Early Stage funding is when a business has launched, but has not reached its final form. At this stage, companies are seeking funding to further enhance customer acquisition and business development.
The Late Stage of funding incorporates Series C, D, or later rounds. This is the stage whereupon businesses are preparing for their initial public offering. Mark Hauser has played the lead in many of these scenarios, helping businesses prepare to move toward the next level.
Key Traits Venture Capitalists Pursue
Once Mark Hauser has assessed the funding stage of a business, he looks for additional traits that consolidate what they do and make them stand out from the rest of the crowd. Emerging companies typically need to have cash infusions to help them get over certain hurdles, but they can’t gain those finances until they meet certain standards.
Mark Hauser wants to see a variety of things from startup companies before he considers putting his money into the system. Let’s look at a few of those concepts below.
- Unique Product – First and foremost, Mark Hauser likes to see businesses that have a product or service that stands out from the crowd. A distinct offering can make sense for investors looking to get into a target market. Business owners can help their case by identifying unique challenges that their goods and services help to overcome.
- Business Plan – You can’t find enduring success without time spent on preparation. Angel investors like to see a thorough business plan that has been backed by extensive efforts. This business plan will also help to outline potential growth in the future.
- Ethical Guidelines – Finally, Mark Hauser is of the mind that a rigorous set of ethical guidelines can go a long way toward addressing potential concerns that investors may have. We are living in the age of corporate responsibility and young businesses should remember that.
With the right planning and approach, Mark Hauser believes that businesses can better attract the kind of attention and funding they require.
