You’ve developed a fantastic custom MVP app, but how do you take things to the next level? In this article, we’ll look at how to get venture capital for your MVP.
If you want to grow your startup, bootstrapping and relying on loans will only take you so far. There’ll come a time when you need to get funding from outside investors.
Venture capital for your custom MVP app means you can carry out more extensive research, launch an ambitious marketing campaign, buy office space, and even hire new members of staff. Not only this, but VC firms can offer a wealth of advice and experience that you can take advantage of too.
Many tech businesses like Facebook, Google, and Uber all successfully received venture capital, and the good news is, you can as well!
If you’re looking to get venture capital for your startup, we’ve put together this guide to help. We’ll not only address the benefits of VC funding, but some of the best venture capitalists around the world to get the ball rolling.
Table of contents
- What is venture capital for your startup?
- Venture capital for your MVP: which firms to contact
- Venture capital companies in America
- Venture capital companies in the UK
- The List of Venture Capital companies in Europe
- Venture capital companies in Canada
- Venture capital companies in Asia
- Our top tips for getting venture capital for your custom MVP app
What is venture capital for your startup?
A venture capital (or VC) firm is an investment firm that specializes in providing funding to businesses and startups. These investments come from a combination of financiers, bankers, and entrepreneurs. This makes VC funding different from angel investment, where the money is likely to come from just one investor.
Venture capital is ideal for startups that are reasonably well-established, have good potential for growth, and have a minimum viable product (MVP) already in place. The money that VC firms provide means these startups can expand their businesses, break into new markets, and improve their product development capabilities.
Venture capital companies typically offer both seed and series A funding, making them the ideal option if you need anything from $100k to $10m (and sometimes even more). In exchange for investment, VC companies receive equity in your business and, in most cases, a seat on your board.
You may work with several VCs during the lifespan of your business, or just one. It depends on the industry you work in, how much money you need, and the success of your startup.
Venture capital for your MVP: which firms to contact
The good news is that there is a wide range of different venture capital companies worldwide, meaning you can choose one in your specific industry.
In this part of the article, we’re going to run through some examples of VCs you can reach out to. This list is not exhaustive, and there are lots of other organizations out there that you can contact. Crunchbase has a very extensive list of VC companies in its database.
Remember that you’re not bound to work with VCs in your country. Many venture capitalist companies are happy to partner with startups worldwide and may have offices in many locations.
Venture capital companies in America
- Accel – Accel specializes in tech startups and has funded companies, including Facebook, Etsy, and Spotify
- Andreessen Horowitz – based in Silicon Valley, Andreessen Horowitz specializes in fintech and cryptocurrency
- Backstage Capital – this VC focuses on underrepresented startups, including women, LGBT founders, and people of colour
- Battery Ventures – Boston-based, Battery Ventures invests in life sciences, industrial technology, and software
- Bessemer Venture Partners – offering funding of up to $100m, Bessemer Venture Partners focuses on consumer products and healthcare
- Canaan Partners – Canaan focuses on fintech and medtech startups, with over $6b raised over the past three decades
- Founders Fund – located in San Francisco, Founders Fund was founded by Peter Thiel, who was one of the first investors in Facebook. Founders Fund specializes in tech and Space exploration
- Greycroft Partners – based in New York, Greycroft specializes in consumer internet, fintech, healthcare, and enterprise software, making investments of up to $30m
- Intel Capital – a division of Intel, Intel Capital focuses on technology-based startups
- IVP – IVP has committed over $8b of capital over the past forty years, and is well known for its work with software and gaming startups
- Khosla Ventures – based in California, Khosla Ventures was founded by Vinod Khosla, the founder of Sun Microsystems. The company specializes in investing in health, education, sustainable energy, and fintech
- Kleiner Perkins – often referred to as Silicon Valley’s most notable VC, Kleiner Perkins focuses on technology and life science startups
- Matrix Partners – Matrix Partners has invested over $4b and was one of the first investors in Apple
- Sequoia Capital – one of the most famous and well-known VCs in the world, Sequoia Capital is well known for its strong track record when it comes to successful investments
Venture capital companies in the UK
- 7percent – this London-based VC invests in tech startups in any sector, as long as they have a good chance of disrupting the industry
- Abingworth – with a portfolio of over 180 companies, Abingworth specializes in life-science startups
- Atomico Ventures – working with a wide range of startups across Europe, this VC has invested in Klarna, Last.fm, and Stripe
- Balderton Capital – one of the most well-established VCs in the UK, Balderton Capital invests in tech businesses and offers a two-yearly retreat where founders can meet and network
- Fig – Fig works with startups in any sector, looking for investment from £500k to £5m
- LGBT Capital – this UK-based VC focuses on LGBT founders and startups that provide products and services to the LGBT sector
- Octopus Ventures – this company specializes in startups in the fintech, climate, and health sectors
- Par Equity – this VC company focuses on startups based in the North of England, Northern Ireland, and Scotland
- Sustainable Ventures – this VC has an average fund size of £1m and focuses on eco-friendly and sustainable startups
The List of Venture Capital companies in Europe
- Cottonwood Technology Fund – with offices in the Netherlands and the US, Cottonwood Technology Fund specializes in health sciences, robotics, and climatetech;
- EQT Ventures – specializing in tech, this Swedish VC makes investments between €1m and €75m
- Global Founders Capital – this German VC supports founders of ‘category-defining ventures’ and invested in Slack, Canva, and Revolut
- Hiventures – located in Hungary, Hiventures has a new investment program that helps young founders get funding for their businesses
- Hydra Ventures – based in Germany and with the financial backing of Adidas, this VC focuses on footwear, sports, and apparel
- Newfund – specializing in startups in the US and France, Newfund usually invests between €500,000 and €2m
- Speedinvest – based in Vienna, Speedinvest focuses on fintech, health, SaaS, and infrastructure
Venture capital companies in Canada
- BDC Venture Capital – this VC company focuses on tech industries, including deeptech, cleantech, and healthtech
- Cycle Capital – this venture capital firm focuses on sustainable initiatives, including clean energy, eco-mobility, and green fuel
- Golden Ventures – based in Toronto, Golden Ventures focuses on tech and funds startups looking for investment from $500k to $2m
- Scaleup Ventures – this VC prefers to work with fast-scaling companies, helping them grow and providing lots of hands-on support
Venture capital companies in Asia
- 5Y Capital – known initially as Morningside Venture Capital, 5Y invests in a wide variety of different sectors across China
- Chiratae Ventures – an Indian-based VC, Chiratae Ventures focuses on health tech, SaaS, and fintech
- ZhenFund – this Chinese VC specializes in a range of industries, including healthcare, education, and artificial intelligence
Our top tips for getting venture capital for your custom MVP app
So now that you know which venture capital companies to reach out to, how can you increase the chances of getting funding?
Here are some of our top tips when it comes to obtaining venture capital for your startup.
Get a foot in the door
Many of the venture capital companies we’ve mentioned have a contact us section on their website that you can use to get in touch with a pitch. However, it’s best to send a message to a named contact where you can.
Do your research to find a name; either by searching social media or liaising with other startups. You can also search Crunchbase to get a list of relevant people.
Most VCs will appreciate your ingenuity and the hard work you’ve carried out behind the scenes to find their details.
Send a captivating email
If you want to get venture capital for your custom MVP app, you need to introduce yourself in the best possible way. That’s where spending time writing a great email comes in.
Keep your email short and sweet – VCs are busy people! An enticing subject line and a clear call to action will also help your cause.
Don’t put all your eggs in one basket
While you might have your heart set on working with one specific VC, it’s important to remember that investment is not guaranteed. Out of every 100 VCs you pitch to, you’re only likely to get one or two term sheets back.
Your odds of success in getting venture capital for your startup increase by choosing the right VCs to work with. Choose companies that specialize in your specific industry and take the time to send a personalized pitch.
Perfect your pitch deck
Similarly, don’t fixate on a VC company because you’ve heard of them. Some of the lesser-known venture capital firms are fantastic options, and because they are smaller, they are more likely to have the time to offer you practical support and advice.
A pitch deck is a short presentation document. You use it to tell VCs more about the unique selling point of your business, how much money you need, and what you plan to spend your funding on.
You typically send your pitch deck to a prospective VC so they can find out more about your startup. Then if they like what they see, they’ll invite you to talk through your deck, either in a face-to-face meeting or via video call.
Keep your pitch deck to ten slides if you’re going for seed funding and twenty slides if you’re going for series A or higher. Stick to the basics, grab your potential investor’s attention, and tailor your deck to your investor. If you know they like to crunch the numbers, prioritize your financial data above everything else.
Prepare a solid presentation
A presentation is essential to most VCs. They not only want to find out more about your business and your custom MVP but see if you’re someone they can work with! It’s also valuable to you so you can learn more about the venture capital company that might be investing in your startup.
Take the time to rehearse your presentation, so you know it inside and out. Think about the potential questions a VC may ask and prepare as much as you can. Remember that it’s better to say you don’t know an answer but will come back to them than to make something up on the spot.
Frequently Asked Questions (FAQ)
Venture capital is funding provided by investment firms to startups with growth potential. It allows startups to expand their business, enter new markets, and improve their products. In exchange, VC firms typically receive equity in the startup and may have a seat on the board.
Venture capital enables you to conduct extensive research, launch marketing campaigns, invest in office space, hire staff, and gain access to valuable advice and experience from VC firms. It’s especially beneficial for startups with a minimum viable product (MVP) and growth potential.
You can research and reach out to various venture capital companies worldwide. Look for firms that specialize in your industry or sector. Many VC firms are open to working with startups globally, so consider firms outside your country as well.
Here are some examples of VC firms in the USA:
– Andreessen Horowitz,
– Battery Ventures,
– Bessemer Venture Partners,
– Founders Fund,
– Sequoia Capital,
Here are some examples of VC firms in the UK:
– Atomico Ventures,
– Balderton Capital,
– LGBT Capital,
– Octopus Ventures,
Some VC firms in Europe include:
– Cottonwood Technology Fund,
– EQT Ventures,
– Global Founders Capital,
– Hydra Ventures,
Key tips include:
– Research and reach out to potential investors.
– Craft a compelling email introduction.
– Diversify your target VCs, but choose them wisely.
– Create an effective pitch deck with essential information.
– Prepare a strong presentation, rehearse, and be ready for questions.
Start by finding a named contact within the VC firm if possible. Craft a concise and engaging email with a clear call to action. Keep the email short and enticing to grab their attention.
Yes, a pitch deck is essential for conveying your startup’s unique selling points, funding needs, and spending plans. It provides potential investors with insights into your business.
– Rehearse your presentation thoroughly;
– Anticipate potential questions;
– Be transparent about what you don’t know;
– Tailor your presentation to the investor’s preferences and priorities.
We hope this guide has given you lots of valuable insight into working with venture capital companies to get funding for your custom MVP app. Remember that finding the right company and VC partner to work with is crucial to your success!