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Home/ Questions/Q 16946
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Loren Flemming
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Loren Flemming
Asked: April 6, 20212021-04-06T12:11:31+01:00 2021-04-06T12:11:31+01:00In: Company

My business is just 8months old, can I approach a venture capital firm?

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My business is in need of larger fund, I do not want to take a bank loan. The business is relatively new though, but can I approach a venture capital firm to help fund my business?

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    1. Catrina Eaton
      Catrina Eaton
      2021-04-07T23:23:33+01:00Added an answer on April 7, 2021 at 11:23 pm

      No, you cannot. Your business must have been existing for at least a period of one to two years before you can approach a VC firm. It is always advisable that you don’t start your business with loans of any type when your business is at the seed stage, try to use money from your savings or raise money from your friends and family. Your business at 8months is still considered very fresh, new and budding.

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    2. Sharri Briones
      Sharri Briones
      2021-04-08T12:21:57+01:00Added an answer on April 8, 2021 at 12:21 pm

      The trick of course is what is significant and that depends on your business. Before you approach a VC firm, be sure to have done a little tangible thing in your business that you can use as a leverage.
      If you are planning ahead, you can approach a VC firm sooner, on the understanding that you are getting to know them for a future investment, and you are not ready now the VC firms will be impressed.

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