So today I want to share some of the things Ive learned from this process.
You must learn how to talk to VCs in their own language.
Frame the problem using real examples.
Make them clearly understand the urgency behind your solution.
Is it a nice-to-have or an urgent thing?
When youre early in the market, you dont fit a well-established market category.
It’s free, every week, in your inbox.
VCs need to understand why what you sell will be a category in the future.
Your web link is everything
You have heard this a million times its all about relationship building.
So youre always in a marathon preparing for the next funding round.
Give something and ask for something in return.
Get familiar with VC flirting
Investors are always flirting.
They want to be kept in the loop even if theyre not interested in becoming your investors.
Being in the loop is one of the most valuable assets for VCs it means access to valuable information.
So you have to know your way around this flirting game.
You know the profile of your soulmate VC in each round.
When it comes to VCs, reputation is everything.
Set the rhythm and keep it
Your first concern when raising money should be timing.
Never ask for money when you need it.
Ask when you have a strong plan to convert the money you will get into more money.
You are talking to investors after all.
Assuming you get the timing right, you must then own the rhythm of the process.
Dont allow the train to stop, even when pressured otherwise.
You have a goal to achieve and the only way is forward.
Embrace change but never lose your core values
Raising capital means constantly learning and changing your perspective.
You have to align the interests of multiple stakeholders: your employees, the founders and the VCs.
It must be a win-win for everyone.
Your own values will be tested often.
What if a prospect VC wanted to take the company in a completely different direction?
These things blur the line between having open horizons and staying true to your companys values and culture.
So before signing, think back to when you started and ask Is this what I wanted?
Is this the company I want to build and grow?
Of course, no two entrepreneurs share the same path and theres no silver bullet in raising money.
