Getting funding for your startup can be very tasking but there are VCs to assist, all you have to do is to get them.
How? Give out the right information in the right manner and make sure you do all necessary findings.
Pitching to a Venture Capitalist or a Venture Capital Firm, you have to make your pitch a memorable one as several factors go into whether or not to invest.
Here are the 5 step process to capture the heart of the VC:
Gather your Plans or Metrics: Note the data points and factors that VCs consider below.
Proof of Concept: You can project your market share through a graph but what Venture Capitalists want to see is proof of your illustration – the demand of your market as they are only interested in investing in sustainable businesses.
Product /Market Fit: They want to see data that your business or product is that which fits into the total market -others are willing to pay for and available room for growth.
Customer Acquisition Strategy: Marketing to your Target audience should be part of your core strategy. You have to be prepared to give specifics on how you are achieving this.
Liquidation Preference: This is to ensure that the investors get paid promptly whether the business should sell out or go out of market.
Know what you need at the back of your hand
Valuation: The value of your company even when you have just started not so long ago depends on communicating the amount of stake the VC would get in return for his investment. Early valuations are based on revenues, reputation, market demand and demonstrated traction. The more money you get, the quicker you are expected to grow – therefore, high valuations aren’t always all-time better, it depends on your strategy.
Narrow Down: Here you target the VCs that best identify with your goal, their previous investments and how best they understand your industry.
Research VCs: Once you’ve done the above, study the VCs and their background, have an understanding of their policies and find your best match.
Prepare your pitch: Have a brief summary of your pitch at the conclusion, understand questions VCs would ask and prepare answers to those questions, have a tagline for your conclusion.
Perfect Your Pitch with others: Always let people know about your business any chance you get. The passion for your business should flow through you towards others. Be an active listener to what others have to say (it might just be of benefit), be transparent and strategic concerning matters of your organization.