How to Find Venture Capital Investors
VCs invest in high-growth startups with $1B+ market opportunities. Most deals come through warm introductions. Cold outreach rarely works. Stage-appropriate targeting is essential.
VC Databases and Platforms
Crunchbase lists VCs by stage, industry, location. Use for research, not cold outreach. Shows portfolios and investment criteria.
AngelList provides startup-investor matching. Some VCs active on platform. Check firm participation before relying on it.
VC websites: Research investment criteria, portfolio companies, and partner backgrounds. Understand their focus before reaching out.
How VCs Source Deals
Warm introductions: Trusted sources (portfolio founders, other VCs, industry contacts). 20-30% response rate. See our outreach guide.
Accelerator demo days: Y Combinator, Techstars provide direct access. Top demo days attract active VCs.
Cold outreach: 1-3% response rate. Works only with strong traction, personalized approach, and clear fit. Most VCs ignore cold emails.
Stage-Appropriate VCs
Seed: $500K-$2M. Product-market fit signals. Early traction. Won't fund pre-product startups.
Series A: $2M-$10M. Proven traction and growth. Clear unit economics. Path to scale.
Growth: $10M-$50M+. Strong traction and scaling needs. Won't fund early-stage.
What VCs Evaluate
Market size: $1B+ TAM required. Small markets get rejected regardless of team quality.
Traction: User growth, revenue growth, engagement. Seed VCs accept less than Series A. Prepare metrics.
Team: Relevant experience, execution ability. First-time founders need stronger traction.
Competitive position: Why you'll win. Defensibility. Moats.
VC Process and Timeline
Timeline: 2-4 months. Initial meeting → due diligence → term sheet → closing.
Due diligence: Financial review, market analysis, team evaluation, legal review. Larger deals = more extensive.
Term sheet: Valuation, equity stake, board seats, investor rights. Negotiate carefully. Legal counsel essential.
Common Rejection Reasons
Small market: $1B+ required. Small markets limit returns and exits.
Weak traction: No validation = no investment. Build traction before approaching VCs.
Poor team fit: Inexperience or skill gaps. Address through co-founders or advisors.