How to get venture capital in traditional industries, such as clothing brands

First of all, you need to understand the background of venture capital firms, and find out if the venture capital firm in your target understands the industry you are in. If they generally do not invest in industries they do not understand. Further, whether they have invested in some companies in this field before. All these will help you in your initial judgment.

After the initial contact between the company and the venture capital company, and after the venture capital company has generated some interest, the company should submit a more formal business plan to the venture capital company. It should include the following parts:

1. Introduction to the enterprise

2. Analysis of enterprise prospects. For the enterprise itself and the basic characteristics of the industry for a more detailed introduction, for venture capital companies to use for decision-making. This part can include the following:

A. Industry introduction

B. Corporate profile

C. Market development trends

D. Corporate outlook. (product sales forecasts, revenue estimates and profit forecasts, etc.)

E.Production conditions

F.Technical team

G.Supplier situation

3.Introduction of management team. This section mainly shows the strength of the company's management, including the educational background and professional experience of the main managers, and their shareholding in the company.

4. Investments. This section focuses on the plans for utilizing the venture capital.

A. Proposed use of venture capital. Including the amount of venture capital applied for, in what way to return? How much of the company's share will be held by the venture capital firm and other conditions of the venture capital investment.

B. Venture capital utilization plan

C. Venture capital company's future position in the enterprise. How many seats on the company's board of directors? Will the VC firm be required to recommend senior executives?

5. How the VC firm will return its investment, how the venture capital will be withdrawn, and whether the enterprise will end up being publicly listed, sold, or whether the entrepreneur will buy back the shares need to be agreed here.

It is important to emphasize that VC firms pay extreme attention to the quality of the entrepreneurs themselves as well as the composition of the management team when reviewing applications for venture capital. For entrepreneurial companies, human resources are the most important capital that determines the fate of the company. If you want to get overseas venture capital, your management team must be internationalized. That is why entrepreneurs must focus on it in their business plan.