Arnon Dror – 2 Key Factors Entrepreneurs Need to Consider Before Approaching Venture Capitalists


Arnon Dror is a popular financial professional who has made his mark in the world of global finance. This MBA graduate from Hebrew University has an illustrious career spanning almost 20 years. During this tenure, he has the privilege of discharging the office of Vice-President in many companies. US Channel Group, Creo Americas, Scitex, Kodak, Creo Americas and Presstek are some of these organizations. The officials of these establishments credit him to improving the fortunes of their concerns. They acknowledge he has a very impressive track-record in the area of business turnover. They even agree he is a specialist is many complex and diverse fields. These include cash flow management, internal controls, ERP integration, international taxation, strategic management, and corporate mergers.

Arnon Dror – What do start-up entrepreneurs need to know of venture capitalists?

This expert says entrepreneurs on the verge of establishing their businesses generally approach venture capitalists. These aspiring businessmen believe taking this step can help them to raise the money they need. It’s a far cry from other traditional modes of financing. However, these proprietors soon realize a bitter truth. Convincing these investors to give them the sum their require is a long and frustrating process. There is no guarantee they’ll be able to achieve their overall objective. It is important for the owners to understand the mindset of these individuals. Only then should they present to plans to introduce a ground-breaking product in the market.

This specialist explains start-up entrepreneurs need to understand an important fact about venture capitalists. These investors are very selective of the people they want to help. At the end of the day, they want a very lucrative return on their money. They look for the following two essential factors when businessmen approach with their projects:

  1. Market potential

Start-up entrepreneurs may have ground-breaking ideas of introducing something new to the public. This is why they approach venture capitalists to fund their projects. However, these investors want to know the market potential for such products. These businessmen need to convince them that what they are introducing can attract a large target audience.

Moreover, these individuals won’t mind digging very deep into their pockets to pay off it. Only then will these financiers show any interest. They may even go to the extent of offering suggestions on the right course of action to take. This is one aspect which the owners can’t afford to overlook.

  1. How are products these entrepreneurs going to launch unique

The entrepreneurs need to prove to their venture capitalists that their idea is unique. Currently, there is no product in the market which can rival what they are going to introduce. Only then will members of the public be willing to acquire it a good price. Moreover, it should be difficult for other businessmen and companies to replicate their products in any way. The investors seriously consider this aspect before providing the proprietors with the sum they need.

Arnon Dror clarifies approach venture capitalists can work wonders for start-up entrepreneurs. These businessmen can get the money they need to launch their ground-breaking products in the market. However, it can very hard to please and convince these investors. The financiers are going to look at the above two important factors before taking any decision. This is a fact which proprietors need to accept. After all, they are looking for a lucrative return.