in Specialized Markets
When searching for venture
capital, you will discover that many venture capitalists consistently
(or almost consistently) invest in the same kinds of industries or businesses.
For example, one venture capitalist
might only invest in technology-related businesses, while another may
specialize in products with mail order or shopping channel potential.
Because many invest in similar
businesses, this will enable you to quickly identify those venture capitalists
who would be unlikely to invest in your business from those who have previously
invested in businesses in your same industry or area.
While you shouldn't disallow
those who have not previously invested in your particular sector, VCs
often invest in areas they are familiar with, believing the knowledge
will enable them to pick the ones that will bring them the greatest amount
of financial return.