Raising Venture Capital has always been a difficult task as we can see in recent times, it’s becoming more challenging day by day.

As per the odds received from Andreessen Horowitz, only 0.7% equity has been raised and the chances of Startups becoming successful is just 8% which is just 0.05% or 1 out of 2000 success rate.

Venture Capital is crucial for the startups and if the equity rates continue to be the same, then the challenges for the upcoming startups would keep on increasing.\r\n

Now The Question Arises How Can These Odds Be Increased to Make Your Company Successful?

Marc Andreessen, the founding partner of a venture capital firm recently had an interview at Stanford Graduate Business School in which he provided an interesting breakdown of the odds of startups receiving funding from his firm.

He told that there are approx. 4000 startups who seek to raise the venture capital every year out of which 3000 startups\' ideas are taken into consideration and if we go for the exact numbers then approx. 200 startups are taken seriously

Now providing Venture Capital to everyone is not easy so the number of 4000 startups has dropped down to 200 in which these firms can invest.

But Is It True That a Venture Capital Firm Invests in 200 Startups Every Year?

No, the number of 200 is also reduced and approximately 20 startups get the funds from these venture capital firms.

But Do All Startups Succeed?

The answer is no, it’s not compulsory that every idea can succeed. There must be some startups that will generate nearly all the economic returns. The others on the other hand, will either go to zero or limp along ineffectively.

What Does Venture Capital in Startups Entail?

When a venture capital firm wants to invest in the startup, they will look for three main qualities:

1. The startup must have access to huge market
2. It must have some different technology than others so it can succeed in the market.
3. Incredible people

What Qualities Do Top Venture Capitalists Seek in Startups?

There are two main traits for this Firstly, should be the courage to never give up and have to courage to face the failures and learn from the mistake not to run away from it Secondly, they should have creative thinking.

Does Pitch Make a Difference?

There are two different sorts of pitches: good pitch and bad pitch. If your pitch is good, it will explain the original concept and assist others in understanding how that concept might work in the real world.

A bad pitch is where you cannot explain the exact idea it will make a confusion that whether this idea would work or not in the practical world.

To do something new, you must be clear in your mind that how will the whole process work.

How you are presenting your idea in front of people who are interested in investing in your startup. So always prepare a good pitch to get the funding when approaching venture capital firms.

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