Your startup has successfully reached the Seed Stage and is on its way to reaching the so-called "proven product" target. You have a solid user base and a regular income stream. So what’s next?

This might be the perfect time to fast-track your exponential growth with the help of a round of Series A funding. But what you need for this is a solid partnership with your perfect VC match. 

Finding Your Venture Capital Fit

Many entrepreneurs believe that venture funding is the key to success. However, this is not the case. The venture capital market is characterized by the individual synergies between venture capital firms and the risky startups that they fund, some of which provide benefits to the investor. An ineffective or incongruent founder-investor pairing can lead to the failure of a tech company while a good one will propel it into the stratosphere.

It's important to collaborate with a perfect investment partner who has your best interest in mind. One way to minimize risk would be to ensure that your potential VC has many years of experience in the market you’re targeting and knows the business model that fits you best. It also means going beyond the name of a venture capital firm to ensure and researching the specific people who will oversee the investment.

It's important to consider the following variables when evaluating VC’s:

• Industry And Product Fit: Most venture capital firms usually prefer to invest in companies that are a specific type of industry. That's why it's important to have a selection of VC’s that are likely to invest in your company, both in terms of industry and product. Make sure to look for firms that have already invested in your industry as they will likely have a strong track record working with companies similar to yours.

• Stage Fit: Many VC’s are focused on specific investment stages when determining which startups they are most interested in funding. There is a good chance you will find a company that is not just looking for business as usual but is actively seeking out deals with companies that are in a similar stage as your company. You only need to get their attention. 

• Alignment: Do your potential investors share the same vision as you for where your company should be headed and where your investments should be directed? Do your potential investors agree with what your current product roadmap looks like or do they think that you should pivot? Should you accept their perspective and track record to take action? Make sure to have answers to these questions before partnering with a VC.

• Track Record: VC’s, or venture capital firms, do not always have perfect reputations in the startup ecosystem. The good thing is that the venture capital and startup space is relatively small and there are few competitors, which should reduce the time and effort necessary for vetting potential partners. So dig deeper and do your due diligence. Reach out to those entrepreneurs who have previous experience with the venture capitalists you have in mind.

• Connections and Expertise: The funds you receive from an investor are just the tip of the iceberg. Just as important to your growth, you can tap into their connections and experiences. Having someone with extensive experience who can help startups scale successfully and are genuinely interested in your success can be of immense help. Make sure you are looking for venture capitalists who have good experience with startups and have been able to get additional funding fairly easily.

Way to Go

Prior to partnering with a particular venture capital firm, it is important to gain a clear understanding of their investment approach, study previous ventures, and find out their funding date. The right investors will guide you through the right circles, give you advice on how to grow your company, and share their experience in your field.