Imagine I’m the guy with the big bucks and I have lots of startups before me. Most look good and have juicy baits. You happen to be one of the startups with prospects but…heck…there is a whole lot to choose from. How can you make me pick yours?
- Get a strong, relevant referral – a referral, whose word, venture capitalists can trust, can greatly help your case. The referral will be like a middleman between you and the venture capitalists and will act as a guarantor for you. With his backing, you are able to get better reception from them
- Start off with a great, short, unconventional pitch –emphasis on the word ‘unconventional’. Venture capitalists have been there, seen that. If you start your pitch the same drab, routine way, like others before you have, they are likely to get bored as soon as you start. They will tune you out and shut you up after a few seconds with a practiced smile and show you out of the door. Be unique in your pitch, spice it up and make it as visually appealing as possible; however, do not go overboard.
- Be realistic; as much as they love getting hooked on ideas with crazy yields and returns, they still have their heads screwed on straight. If it is too good to be true, they will not likely touch your idea with a ten-foot pole. Do not try to paint your profits to make them look ‘off the charts’; this will be your undoing. Be honest and factual.
- Show the figures – venture capitalists are out to make money. Avoid long bedtime stories and theories and go straight to the figures. Show attainable figures and be able to defend it. Venture capitalists work with figures because; it helps them to make projections easily, if they like your idea