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 security technology, government contracts rarely go to underfunded startups. So when Phil Libin launched Cambridge, Massachusetts-based CoreStreet in 2001, he knew he needed enough funding to last long term. But his broad search for venture capital went nowhere.

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

More from Entrepreneur

Whether you are launching or growing a business, we have all the business tools you need to take your business to the next level, in one place.
Enroll Now

One-on-one online sessions with our experts can help you start a business, grow your business, build your brand, fundraise and more.
Book Your Session

In as little as seven months, the Entrepreneur Authors program will turn your ideas and expertise into a professionally presented book.
Apply Now

Latest on Entrepreneur

My Queue

There are no Videos in your queue.

Click on the Add to next to any video to save to your queue.

There are no Articles in your queue.

Click on the Add to next to any article to save to your queue.

There are no Podcasts in your queue.

Click on the Add to next to any podcast episode to save to your queue.

You're not following any authors.

Click the Follow button on any author page to keep up with the latest content from your favorite authors.