Think Tank: winning investment without the banks So how do you go about making your business look attractive? First, show that you have thoroughly done your homework, not just about your own business but about the industry in which you operate, even before you take the first meeting with a potential VC investor. John Dundon is the managing director of Angel Springs, a Wolverhampton-based business which sells water coolers and has a turnover of £16m. Last year LDC, a private equity firm, invested £12m in his business in return for a 60pc equity share. He says: "It is really important that the management team is well prepared when you begin a conversation with a potential VC investor. You have to demonstrate that there is an attractive market, and that the business has the ability to add value, either through acquisition or through organic growth - or in our case, a mixture of both. As part of this, you also need to demonstrate how the VC will eventually be able to exit the business and obtain a return on their money. Second, you need to show that your business has really strong leadership. For Raymond Fagan, partner at Cavendish Corporate Finance, that means things such as joint managing directors are a big turn-off. People want to see a leader and a support team behind that leader. Clarity of vision is also important and being able to describe very clearly what your business is about," he says. Third, and every bit as important, you need to be aware that you will be scrutinised every bit as much as your business is - and that even the smallest things can have a negative impact on whether you are regarded as an attractive investment. This even extends to how you get in touch with the VC in the first place. Simon Clark, partner at Fidelity Growth partners and BVCA vice chairman, says: "Be clear about who you want to talk to, and for goodness" sake get a proper introduction. It is not that hard. Don't write to them cold and don't send a silly email, it is just too pathetic. One of the things potential investors are going to be testing is whether you know how to sell something - and if you can't even get somebody to introduce you so that you get their attention, then you have just answered that question. In general, personal qualities rank very highly on the list of desirable attributes, says Clark. Trustworthiness, confidence, and the ability to deal with setbacks are important. We are looking for people with high integrity who are not going to give up when things get hard. As the leader of the business you also have to strike the right balance between coming up with sparkling new ideas - and being seen as too maverick to be able to see them through. One entrepreneur seeking VC backing showed up for a meeting with Moulton wearing a comical hat. He didn't get the money. Rachel Bridge is a journalist and author specialising in entrepreneurship and SMEs. Her fifth book, How to start a business without any Money, comes out in August.