Venture Capital firms are the largest providers of equity funding for early-stage businesses in Australia. While Angels tend to invest their own money, VCs source capital from a combination of wealthy individuals and financial institutions. VC firms also usually invest more money than Angel investors and prefer more mature companies with a more developed investment proposition.
While these points are generally true, Venture Capital firms vary significantly in terms of their typical investment size and the kinds of companies they’re looking to add to their portfolio. So before pitching a VC firm, you should make sure they’re a good fit for your company.
A good place to start would be looking at the other companies the firm has invested in recently and what industries and technologies the firm focuses on. Platforms like Crunchbase offer an easy way to find and filter VC firms based on the kind of investment partner you are looking for.
Even after narrowing your search, and utilising a sophisticated VC database like Crunchbase, you should still expect to pitch a lot of different firms before you find that will agree to participate in your fundraise.
