When you are starting a business and running it in the early stages, one of the biggest worries that the founding members have is where future capital is going to come from. While they may have put large portions of their personal savings into the business, as well as help from friends and families, this will not be enough for a lot of businesses.
They will need to look outwards and try to attract funding from external sources, such as venture capitalists. This can be a stressful and often overwhelming process, as they are so many different confusing terminology and deals that will be going on at any moment in time. Great ways that you can streamline yourself through the process is by utilising the expertise of someone like Mark Dubowitz and joining a think tank of fellow startup founders and see how they managed their experience. You can learn what to do and what not to do.
Here is some further advice that will help you along the way.
Approach the venture capitalist in the correct manner
When you are going to venture capitalists in order to secure funding, you need to do so in a positive manner. One of the most important things that potential investors will look at before they decide to make an investment in any sort of business is what the team is like. They don’t want to work with people they don’t get on with or who won’t take any of their advice on board.
A great way in which to get a venture capitalist to trust in what you and your team is doping is to get a mutual contact to introduce you two together. This will add a certain element of trust into the equation, as this mutual friend will be able to vouch for you. This will greatly increase the chance of working with these venture capitalists as they know that they will very likely be able to trust you.
Make sure that you are fully prepared for your pitch
When you are pitching your startup to venture capitalists, you need to be able to wow them. They are going to see many pitches each and every day, so you need to stand out and show how professional and prepared you are. Nobody has the time to wait around while you try to get the projector or slides working.
You will usually have between 30 minutes and one hour for your pitch, but don’t have too many slides as this will be boring and cause the venture capitalist to quickly lose interest. Instead, speak from your head and heart and talk about the product or service that you have built from the ground up. Make sure that you have all of the relevant slides, statistics and legal files all in the one place online so that potential investors can check them out at their convenience in case they are interested in investing.