Venture capitalists in Thailand represent different firms. These firms will have developed specific expertise in certain areas of the tech industry. By knowing this before you start looking for funding, you can save yourself a lot of time and effort.
At some point in the progress of your startup, you'll undoubtedly need to seek outside funding. But before you go door-to-door presenting your company to anyone who will listen, do a bit of research into the VCs in Thailand.
You'll find that each of them tends to provide funding to one or more specific types of tech companies only. And there is a valid reason for that.
Most anyone who is looking to invest in something tries to understand everything there is to know about whatever it is they're interested in investing in before they put their money into it. This is just common sense.
After learning as much as they can about the subject of their investment, they’re better prepared to make decisions regarding their investment and its chances of success than someone who simply invests blindly.
VCs are a business. They exist to make money for their shareholders. If they have developed a certain amount of expertise after having found success in one type of tech, why would they fund a completely different type of startup?
They would look to continue their streak of success by investing in the same type of startups in which they’re knowledgeable and have experience.
Startups, in knowing which VCs are looking for their type of tech in the industry, have a better chance of securing funding with a lot less effort and legwork.
By researching which VCs are investors in their types of tech, they're also able to target their fundraising efforts toward VCs that have the highest success rates and thereby reap the benefits of the VCs knowledge and experience.
In gaining funding, the startup is entering into a partnership. Why would you entertain the thought of making someone a partner who knows nothing about your company?
Researching the VC before you make your presentation to them also allows you to target your presentation specifically to the VC to whom you’re presenting. Knowing their history and the types of startups they have achieved success with gives you the opportunity to play to the aspects of their successes that are similar to your startup.
This gives you an edge in attracting their interest. By being able to point out the similarities in your startup and the startups they had success with, you’re almost putting them in the position of coming up with a reason why they shouldn’t provide you with funding.
And if they do have a valid reason for denying your funding, this is valuable also. It provides you with notice that there are still some areas of your startup in which you need to improve.
Remember, just because a VC refuses your request for funding initially, it doesn't necessarily mean that they're not interested. It just means they're not interested at the present time.
Use the negative outcome of your presentation as a positive by making a note of the areas you have to improve. If you get the chance to present to the VC again or present to other like-minded VCs, you'll be in a better position to convince them of the value of your startup to the point that 'no' will not be an option.