Living Entrepreneurship Blog / Babson Entrepreneurs

Secrets to the Venture Capital Industry

Venture capital. The industry can seem like a mystery. For individuals wanted to become VCs, they don’t know how to get their foot into the door. For entrepreneurs, they don’t know how to get funding for this source of capital. As part of Global Entrepreneurship Week and in partnership with the Venture Capital Private Equity Club, the Butler Venture Accelerator hosting Professor Lakshmi Balachandra for “Hot or Not to a VC” talk a few weeks ago. Professor Balachandra helped participants demystify the VC world.

Professor Balachandra is a former VC, and is currently an assistant professor of entrepreneurship at Babson. She shared how she got into the industry, which was for her, were the 3 N’s:

  • Name: if you have a name, use it. Get your name out there so people know who you are.
  • Networks: make sure to network as much as possible. The VC industry is a very network-oriented. You won’t get your foot in the door unless you have a personal introduction.
  • K”no”w how: leverage the work experience you have.

For entrepreneurs looking for VC funding, Professor Balachandra shared these tips. There were some overlaps with those that want to get into the industry:

  • Name: get your name out there, build credibility.
  • Network: like people looking to get into the industry, it is important to keep up with relationships you have with investors. VCs are looking for long term relationships.
  • Be able to clearly articulate your business model, your revenue potential, what is the ROI?
  • How you present yourself matters to investors. Show that you are a trustworthy.

Even if you are not ready to get in the VC industry, VCs may still want to meet with you. But you can’t get in front of these potential employees/investors until you start going out there, building your name and networking. So, what are you waiting for?