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How to pique the interest of a CVC

Colorado startup business owners may be interested in knowing that 75 of the Fortune 100 companies provide some sort of corporate venture capital (CVC). However, these companies will not invest in just any startup. To improve the odds of securing an investment, a startup will strive to have as much diversity as possible in its team of founders. This is because that team will have a variety of backgrounds and skills from which to pull.

To qualify as diverse, teams should include disabled individuals, former members of the military and those who are part of the LGBTQ community. Diversity may also mean having women or minorities among the founders of a startup. Startups will need to demonstrate some strategic reason why a CVC would want to back them. This could be because a startup is doing important research or working on a product that may be useful in the future.

Startups that are creating trendy products or ones that may be part of future trends may be more likely to win the attention of a CVC. Currently, companies that are making products that are used in ambient computing or voice-controlled products give themselves an advantage when seeking funding. This is because they make it easier and more natural for people to interact with smart technology.

For many companies, outside investors may be an effective source of both funding and expertise. However, it may be worthwhile to understand the rights and obligations of both parties before asking for a deal. An attorney may be able to explain any regulatory or other legal requirements a company may have as it relates to seeking funds or disclosing the identities of its investors. Legal counsel may also be able to help draft documents related to closing an investment round.

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