Pursuing venture capital

It depends on the type of business and the opportunity. Venture capital firms (private equity firms) typically want to invest in companies where there is a probability of a high rate of return on their investment within 3 to 7 years. They're very selective, choosing prospective companies with a solid business plan, a good management team, investment and passion from the founders and the opportunity to return 30% to 40%, or more, on their investment.

Target your fund raising efforts to match the interests of potential investors. Make sure your business is a good prospect for venture capital before commiting the time and resources. Also, consider whether your plan may be better suited for an angel investor.