Focused Fundraising

Not getting much attention from VC firms? Be choosy about who you're trying to attract.
Magazine Contributor
1 min read

This story appears in the February 2006 issue of Entrepreneur. Subscribe »

In the high-stakes world of national technology, government contracts rarely go to underfunded startups. So when launched Cambridge, Massachusetts-based CoreStreet in 2001, he knew he needed enough funding to last long term. But his broad search for went nowhere.

Libin, 34, changed his fundraising strategy to include only VC firms with both and extensive security-industry experience. Those criteria shrank the pool of he approached, allowing him to spend more with each one.

"Early on, we talked to more traditional VCs, and everyone told us we were crazy," says Libin. "But as soon as we decided to go for high-value investors, the formula started to work." Not only did CoreStreet get offers from three VC firms, it also landed million-dollar contracts from the Department of Defense and large corporate customers, helping sales reach about $5 million in 2005.

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