Developing a successful business requires planning, foresight, and the right amount of luck to break through at the proper time. Startup and early-stage businesses also must overcome serious logistical and financial hurdles, including finding funding, key operatives, and the infrastructure required to create long-lasting success.
Mark Hauser has been plying his trade as the co-managing partner at Hauser Private Equity, leveraging years of industry experience to provide his clients with access to the financial and structural support they need to find success.
In order for startups to continue finding success, Mark Hauser believes there is a methodology to the approach that would behoove them to learn.
Finding Startup Capital the Right Way
When looking for startup capital, businesses are first going to be sorted into a variety of funding stages. Venture capitalists target businesses based on where they are at in their growth phase, providing clients with the help that best matches their needs.
Businesses entering the seed stage of funding will require more in the way of cash than other businesses. This cash will be used for market research and product development as well as team coordination. In the early stage of funding, businesses have launched their items into the marketplace but still need support to shift into new sales channels.
Finally, late-stage funding is for companies that have already defined their target product offering while finding their target markets. Late-stage funding shows Mark Hauser that businesses are ready to leap into the next level of action.
What Venture Capitalists Are Looking For
Startup investors usually receive solicitations from seed-stage business owners as well as businesses entering their early stages of development. It is at this point that businesses are either going to make it or be affected by a lack of funding. At this point in the funding journey, venture capitalists are looking to connect with businesses that satisfy a unique set of requirements.
Mark Hauser suggests that startup investors look closely at the following areas when attempting to get funding from a venture capitalist.
Unique Goods and Services are the leading reason for venture capitalists to connect with businesses while still in the infancy of the investing phase. Mark Hauers wants to see products or services that address gaps in the marketplace, or that directly impact the needs of the market.
Businesses that address the market’s needs by providing them with good products and distinct services will have better luck attaining the kind of funding that is necessary for prolonged success. Business owners should take a close look at what they are lacking, as it will come up during conversations.
In the same way, venture capitalists like Mark Hauser will also prioritize businesses that offer ethical and sustainable business plans for their operations. Haueser points to the increasing importance of corporate stewardship, particularly among Gen Zers and Millennials alike. A sustainable and community-focused business plan will draw more interest than something that acts to the contrary.
Finally, Mark Hauser suggests businesses take time to outline a path toward their goals. Venture capitalists want to see business plans that showcase a startup’s possibilities as well as where they can achieve in the future. Growth shows promise, and promising growth can lead to buoyed returns.