With over 500,000 new businesses started each year in the United States, it is safe to say that the entrepreneurial spirit is alive now more than ever. The SaaS marketplace has converted the formerly prohibitive fixed costs of starting a business into far more affordable services, leading to the proliferation of creative startups. Although many of the barriers to entry have been broken down, early stage startups are still having a hard time attracting investors.
Syntiq Ltd, a leading provider of data on the venture capital and private equity sectors, has recently begun an initiative to bring investors and early stage entrepreneurs together. “Most venture capital firms have become too big to write small checks,” said Mick Dinnen, founder at Syntiq. “So, our goal is to leverage the insights from our database in a way that helps small entrepreneurs find strategic partners.”
Strategic partnerships seem to be one way that early stage entrepreneurs are able to attract venture capital. According to research conducted by Syntiq, venture capital firms are far more likely to fund a startup when they see an opportunity to plug it into their current network. “A firm that is active in Human Capital Management, for example, may be more likely to fund a payroll services startup. This is because the firm sees the potential to leverage its current projects towards the success of this new venture,” said Dinnen.
So what does this mean for early stage entrepreneurs? Basically, it’s time to get more targeted with investment prospecting. Rather than sending generic business plans to thousands of venture capital firms, Syntiq advises young startups to do their research and find firms that are potentially solid partners. “Don’t just blast off your business plan to every VC firm you can find,” said Dinnen. “Instead, use the Syntiq database. We will take the time to understand your project and then check it against our database. We’ll tell you which firms might make good partners, and we’ll even help you get introduced.”
In short, Syntiq advises entrepreneurs to make good use of their most limited resource; time. By reaching out to a targeted list of potential partners, the early stage startup has a much better chance of establishing a successful partnership.
Start the search for venture capital partners today by visiting http://syntiq.com/