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If you need money to fund your business and you want to minimize your financial risk, one place to turn to is the venture capital (VC) marketplace. Venture capital firms are in the business of raising money and then putting it in the hands of businesses that make their money grow. They usually invest capital in new ventures, hence their name. So for start-up companies, venture capitalists can be a very important (and discerning) audience when it comes to the business plan. You can bet that they will read your plan very carefully before handing over any cash.

Sounds simple, right? Well, lining up venture capital funding isn’t easy. Would-be entrepreneurs have been led to think that a great idea and plenty of enthusiasm are enough to shake the money tree. You need both, of course, but now you’re only at the beginning. According to a recent survey, venture capitalists fund less than 1 out of every 500 business pitches (proposals) they hear.

What do you need to succeed in the venture capital sweepstakes? First, it helps to know about the nature of VCs. Venture capitalists come in all sizes, from small, independent operators to large national or even global VC firms that evaluate thousands of new business proposals every year. Some VCs specialize in certain industries — biotechnology or e-commerce services, for example. Others tend to stay close to home, funding companies in their own geographic area so that they can keep close tabs on their investments. Some VC firms prefer to invest in companies working in the early stages of development. Others look for companies that need a final push into the big leagues.

Now comes the $64,000 question — or if you’re lucky, make that $64 million: What’s the best way to get your business idea and plan in front of real, live investors? We wish we could give you a sure-fire, one-size-fits-all answer. There isn’t one. Still, entrepreneurs who’ve been successful before can provide you with valuable knowledge. The following sections provide a few tips that should help you distinguish yourself.