A venture capital firm can transform a business idea with prospects into reality and make entrepreneurial dreams come true. But entrepreneurs would do well to understand what makes a venture capital firm tick before they start contact the venture capital firm.

Understand that investors who back a venture capital firm are institutional investors and wealthy individuals who want to diversify their investment portfolio and achieve superior investment returns. They want a high return and they want it quickly. In most cases, the venture capital firm is simply "hired help" -- middlemen who stand between the entrepreneurs and the investors, brokering deals and information and hopefully adding substantial value along the way.

The venture capital firm is under extreme pressure. Their investors want results and they want results fast. If the portfolio companies don't do well, it's game over for the venture capital firm. They likely will not be able to raise additional funds in the future. Moreover, they typically receive a portion of their compensation in the form of a carried interest in the portfolio companies. Hence, the venture capital firm needs and wants its portfolio companies to do well.

Another important fact about the venture capital firm is that they like to manage a lot of money. Part of their compensation is tied to how much money they manage. A venture capital firm may have billions of dollars under management. They frequently are understaffed so they need to make big investments in each portfolio company.

But each venture capital firms is different. For example, some will invest in seed stage companies and others won't come near a seed stage company. Some are experts in biotech and others are expert in information technology. Call on a venture capital firm without fully understanding their specialization and you immediately lose your credibility. If you won't spend time learning about them, why should the venture capital firm spend time learning about you?

Gaebler Ventures is a fairly unique venture capital firm. If you are an entrepreneur with a great idea or technology and you are interested in partnering with us, please take the time to learn more about how Gaebler Ventures operates as a venture capital firm and, if the fit looks right, please get in touch. Remember, however, that we get many, many inquiries and we may not be able to respond to each and every business plan we receive.