While entrepreneurs face numerous challenges, one that many find most daunting, especially in the startup phase, is raising capital. The hunt for venture capital can be frustrating and intimidating, but it can also be exciting, interesting and ultimately successful. There is as much art as science involved in raising capital, and every entrepreneur faces his or her own unique set of circumstances. However, a few simple tips can greatly increase your likelihood of success.

“This may be the single biggest determinant in how successful you will be in securing an investment,” says Joseph Gitto, Managing Director of Geller & Company’s Emerging Business Group. “Different venture capitalists (VCs) invest in different types of businesses and at different stages in their evolution.”

Start by Doing Your Homework Visit a number of VC websites, and tap trusted advisors for help in understanding the positives and potential negatives of the various capital sources available in the marketplace, suggests Ryan Ziegler, an investment manager at Edison Venture Fund. “Too many capital sources around the table is hard to manage; it’s what we call a ‘syndicate fallacy,’” he says.

Determine how much money you need to support your execution plan over the next 24 months—the “capital efficiency argument,” Ziegler calls it. “You need to find the right balance. If you over- or under-capitalize your business, you have the potential to diminish future returns.”

As you narrow down the pool of potential VC backers, learn as much as you can about their individual investment strategies. Focus on the ones whose strategies are most closely aligned with your business plan. For more on raising capital, click here.

Hone Your Presentation You should be able to present your case in a clear, concise and compelling manner in the Executive Summary section of your business plan. Ziegler suggests presenting it in a problem-solution format. “What is the business problem? How does your solution solve this problem? Demonstrate your knowledge of the marketplace, and be able to explain why you are unique,” he says.

During face-to-face meetings, stay focused on the reason you are there, which is to raise money, Gitto advises. “Your motive is to convince your listeners that investing in your opportunity offers them the best potential return among all the other opportunities they are considering,” he says. “Zero-in on the business case and stay there; don’t worry about ‘wowing’ them with your technology, service or product. They are already convinced that it’s got some potential or they wouldn’t have agreed to the meeting.”

“VCs want to know everything they can about you, your management team and anybody else who is critical to the venture’s success. At the end of the day, the decision to invest will be heavily weighted by the confidence the VC has in you and your team. Investors bet on the jockey, not on the horse.”

Based on the research you did earlier, map your business plan to the VC’s investment strategy. “Give the investor a reason not to say ‘no’ because you’ve aligned your company’s plan with something they believe in,” Ziegler says. For more on how to perfect you presentation, click here.

Demonstrate Management Team Self-Awareness Potential investors are most interested in the people behind the opportunity. “VCs want to know everything they can about you, your management team and anybody else who is critical to the venture’s success,” Gitto says. “What is their track record in similar historical situations? Can this management team execute at the level required?”

Naturally, you want to paint the most positive picture possible, but make sure you can back it up, Ziegler warns. “Be candid about your strengths and weaknesses both, and be ready with an answer on how you plan to address the latter,” he says. “Provide client references, case studies and real sales pipeline data to back up what you say.”

Needless to say, VCs will weigh your proposal from the perspective of whether or not it will produce an acceptable return on their investment, so your presentation must be able to make that case. But it’s not just about pie charts and sales graphs, Gitto emphasizes. “At the end of the day, the decision to invest will be heavily weighted by the confidence the VC has in you and your team,” he says. “Investors bet on the jockey, not on the horse.”

For more information, please contact Joe Gitto at jgitto@gellerco.com.