Tell Them What They Want to Hear
Starting a business is not easy. You might have the greatest idea in the world, but you still need the cash to back it. One way to finance your company is to approach venture capitalists. This can be a long, intimidating, and unsuccessful process, but if you know what they want, the process will be less scary (well, at least a little less.)
Start by writing a business plan and formal pitch. If you don’t know how, get help. It should focus on how your company will compete in the market and how you intend for it to make money and build value.
Make sure to find VCs appropriate to your company that have histories of investing in businesses similar to yours. Use connections to talk to partners; don’t settle for an associate.
If your pitch is rejected, ask why. Use this information to modify your pitch and your list of VCs.
If you’re invited to make a presentation, be sure to address the VC’s needs. Tell them what problem you are trying to solve and how your solution is different and better than existing ones. Talk about your audience, its growth potential, resource requirements, risks, and rewards. With that in mind, keep the presentation crisp, concise, and clear.
Good luck.
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