8. Closing them:
You have ten seconds to grab their attention. All your hard work, months of research, writing a business plan, preparing a presentation, finding advisors, networking, and finally getting your foot in the door, and it comes down to ten seconds? Venture capitalists want to know that you know what your company is all about and why it will succeed, and they want to know it right now! They don’t want some long winded entrepreneur rattling on for ten minutes just to get the mission statement across. The technically minded entrepreneur may offer up something like: We have developed a new polymer that decreases the thermal dynamic friction across any metallic surface. Wow, I’m asleep, how about you? But how about: Our new polymer enables cars, boats, and airplanes to travel substantially further on less fuel. Okay now you have my attention and I can easily grasp the market size and application.
Before you contact your first potential investor it is extremely important that you know how to describe what your company does in a compelling way that will make you stick in their minds.
9. Being prepared:
Doing all of the above steps will not guarantee your success, but failing to do them may guarantee your failure.
10. Think this sounds like a lot of work?
You are right it is, but if you are not willing to do this level of work to get to funding you need to succeed, then please stop right here because you will never get funded and you are wasting your time.
Maybe one out of every 10,000 companies that seeks venture capital actually gets it. Why do you think that is? Because it is extremely hard, it takes a lot of work, and it requires a level of determination that most entrepreneurs just don’t have.
Most venture capital hopefuls just get a name, submit a plan, and it goes directly in the round file without ever being read, some don’t even get opened. In order to succeed you have to do your homework, know what you are doing and plan your success.
Most aren’t, so be the exception not the rule.
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