RWI Group: Entrepreneurs FAQs #11

There is no substitute for a well-written business plan, a sound company value proposition, and a strong team to execute the plan. Those companies exhibiting these traits are most likely to receive positive responses from RWI Group and other venture capital firms. A solidly researched and well-written business plan should provide the reader with the impression that the company founders have given significant thought and attention to the business.

However, there are other areas beyond these "fundamentals" which entrepreneurs can use to improve their odds. Strong references help. If one looks at the small percentage of companies which obtain venture capital funding, many were referred to venture capitalists by trusted third parties. If selecting a bank, accounting firm and law firm prior to seeking venture capital funding, founders should pick firms with experience working with venture-backed companies. These firms can provide recommendations or introductions to venture capitalists and add an additional level of legitimacy to fledgling businesses. Founders should also take advantage of alumni networks from college, graduate school and previous employers. Recommendations from top management of companies backed by venture capital firms are likely to carry significant weight as well. Finally, if a company received seed financing from Angels (wealthy private individuals), these individuals may be able to facilitate venture capitalist introductions.

At RWI Group, our Limited Partners (investors) include entrepreneurs, CEOs and top executives in leading technology companies, investment bankers, attorneys, and other venture capitalists. Our network of Limited Partners provides us with excellent references and introductions, ensuring a well-qualified deal flow. Management of our past or present portfolio companies are another source for great recommendations. Additionally, our close ties with leading law firms, accounting firms and financial institutions cause us to pay close attention to start-ups backed by these firms.