Raising Venture Capital in Ireland
Venture capital investors encounter thousands of pitches every year, but they just invest in the select few companies or ideas. That confirms that convincing an individual to lend you tens of thousands of dollars to finance your weeks-old business idea isn't an easy task.
When you consider the fact that a typical venture capital investor will potentially come across many pitches in per year, it becomes more difficult to prove your business idea as a Worthy investment.
lf believe you've reached a point where you can no longer bootstrap, and you want to raise capital, ensure you do proper research. You need to understand the consequences of taking VC and know exactly who you Want to pitch and how to present your business value.
It is easy for new entrepreneurs to believe that they should pitch a billion dollar idea to get the interest from the investors, and that isn't how it works. Pitching a VC investor isn't an exact science, but here are four tips to help you make your pitch stand Out.
1. See The Future And Tell Your Story
No, you do not require a Crystal ball, but you require an emotional investment and market projections in your topic. For the first meeting with your VC partner, it is debatable if you have to bring legal and financial paperwork. What is not debatable is the amount of passion you should demonstrate to prove you (and your startup) are a worthy investment.
The limited commodity for the investors is not finding good pitches; it is finding entrepreneurs who have real knowledge and real passion around the topic. Being able to demonstrate that you breathe, eat, and drink your topic is very important, but it's just part of the equation.
Your own investment in your entrepreneurial idea can be explained in your overall story; however, you should also show how your passion for this brilliant idea will play out in the future. You have to demonstrate how, due to your involvement, the business will grow in the future.
Knowing you can tell your story confidently should be followed by the understanding of how you'll do as a business. Data and passion are essential, but they've to work together to prove how this will be a successful business.
2. Be authentic
The greatest turn-off for a VC is an entrepreneur who's trying to be something they are not. Being yourself will make the pitching process easier since you're just communicating what you believe.
It takes a "salesperson"pressure off and assists you to relax. Now, if you do not really believe in what you are pitching, cut your losses and go away since this will not end well for anyone involved.
Think about it as a dating relationship. You will experience problems down the road as your relationship deepens if you misrepresent yourself in the beginning. Being persuasive is an essential part of being a good entrepreneur, but you need to be careful to persuade the investors to invest in you and your business idea. Don't just tell them what you think they should hear.
3. Target and execute
Keep in mind that several entrepreneurs succeed due to their naivety of convention. Having said that, there are some rules of thumb which you should consider.
Ensure you're pitching the right person. Just as companies specialize in specific verticals, certain partners can also specialize in particular sects within those verticals
Watch out for the "fake' partners. Several companies now have partners, who have the title, but no real authority in the business to sponsor a specific deal. Previously, they used to be called 'associates' but the line has now become extremely blurry.
Perhaps, a venture capital partner isn't going to lead you on intentionally, but you need to ensure you go through the correct channels when communicating with a company. When pitching, the best place to begin is showing where your product or service physically sits in the spectrum of the solutions.
4. The Demo Must Work
If you choose to include a demo with your pitch, it should work. This is very critical. Any technology hitches (from an issue with your prototype to an internet connection not being fast enough for a smooth demo) aren't only unprofessional, they are a waste of everybody's time.
For this reason, keep your demo simple. An excellent product demo does not have to include each potential feature but should take a potential investor through the primary use cases showcasing why you developed the product the way you developed it.
When it comes to a presentation, think long and hard about how you should present yourself. Develop the slide deck and send it to the partners in advance, so they understand what to expect. The main thing about your PowerPoint is to ensure the quality of your vision is shown on your slide deck.
The information and design should provide an idea of what you value as an enthusiastic entrepreneur and what type of company culture you're trying to develop. Do not use your PowerPoint as the crutch. No verbatim speeches or quotes. No complete sentences
Venture capitalists are not walking piggy banks. They're people you're entering into a relationship with. So, be transparent, be yourself, and always be clear about what you require.