Venture capital is the money that is invested in start-ups and similar emerging organizations. This capital is typically occurs after seed funding. A large number of start-ups choose to go for venture capital in order to raise capital. Venture capital plays a major role in helping the companies with business functions like technical and marketing skills, financial literacy and so on. Venture capital supports organizations in these four stages-
- Ideating – Brain storming and generating an idea for business.
- Start-up – Taking the initial steps.
- Growth and expansion – Consistently working towards organizational development and growth.
- Exit – The venture capital wraps up with its assistance in this final stage.
So, how to pitch a VC?
What is that one thing that a venture capitalist looks for before investing? Well, the answer is simple. It’s the people of that organization. It’s about your commitment towards your product and creation. Venture capitalists look at your knowledge and passion. Do not fail to do your research and have your vision in place before you reach out to a venture capitalist. Bring it to the table and he would gladly take a step in investing in your business.
Having the required skills before pitching a VC has its own big benefit. As a matter of fact, not every person is likely to possess a full set of these skills, but taking ownership to develop them can create an impression and an impact on the investor.
Now, while you talk to the venture capitalists, keep it short and crisp. Experts have stated that long power point presentations have not always succeeded. Instead, they look for a clear, straight picture about the organizational needs.
Lastly, assure the venture capitalist that he is a strong stakeholder in the organization. He needs to know he’s done the right thing by investing in your business.
And finally, remember to keep it catchy with your presentation.
Co-Founder, Z Nation Lab