How to Maximize Your Chances of Getting Venture Capital
Raising venture capital is no easy task. The odds are stacked against you from the start. In fact, only about 2% of startup companies will ever receive VC funding. So, how can you increase your chances of being in that 2%? Here are a few tips.
Use Your Networks
One of the best ways to get VC funding is to use your networks. If you have any connections to VC firms or individual investors, now is the time to use them! Sending a cold email or LinkedIn message out of the blue is not going to get you very far. But if you have a warm introduction from a mutual acquaintance, you’re much more likely to get your foot in the door.
Do Your Research
Before approaching any VC firm, it’s important that you do your research. First and foremost, you need to make sure that the firm actually invests in companies in your industry. There’s no point in trying to pitch a healthtech startup to a VC firm that exclusively invests in fintech companies. Second, try to learn as much as you can about the individual investors on the team. What companies have they invested in before? What do they tend to look for in a startup? What industries are they most interested in? The more intel you have going into your pitch meeting, the better.
Tell a Compelling Story
Once you’ve done your research and you’re ready to sit down with some VCs, it’s time to start pitching them on your startup idea. And in order to get them excited about investing, you need to tell a compelling story. Investors want to see that you have a clear vision for your company and that you’re passionate about what you’re doing. They also want to know that there’s a market for your product or service and that your startup has potential for high growth. So, whatever story you decide to tell, make sure it hits on all of those key points.
Conclusion
Raising venture capital is notoriously difficult — but it’s not impossible. If you want increase your chances of getting funded, use your networks, do your research, and tell a compelling story when pitching VC firms. And who knows? With enough hard work and perseverance, maybe your startup will be the next big thing!
Need help with raising your Seed to Series B round? Book a meeting with the StrtupBoost team to learn more about our pitch events and growing network of tech investors looking to meet Founders who align with their investment thesis: https://bit.ly/3NHVbc3.
