Entrepreneurs and startup owners often wonder how long it will take to raise the venture capital they need for their businesses to grow and survive in a competitive marketplace.
Before answering that question, it’s important to consider the amount of time it will take to become investor ready. Typically it will take businesses at least four to eight weeks of preparation in order to get to the point where they are ready to present investors with a comprehensive business plan and proof of concept.
In order to be investor ready, you need to be able to prove that your product or service has a market and will be in demand. You also need to demonstrate exactly how you plan on producing and selling your product or service. Essentially, you need to be able to convince investors that they are making a worthwhile investment that will pay off in the long run.
Once your business is investor ready, it comes time to begin identifying and pitching to potential investors in the hopes that they will offer you the capital that you need. In truth, there is no sure fire way to determine exactly how long this process will take.
For this reason, it is important to stay patient and not to allow rejection or disappointment to dissuade you. While it is prudent to allow yourself between six months and year to raise capital, it could take significantly more or less time.
Keep in mind that there are many different potential sources of venture capital in Australia. If one option is not panning out, then it may be prudent to look elsewhere.