Suraj Rajwani – The Real Deal
Venture capital is one of the most critical parts of the tech industry. Without it, many companies would not exist today. It is why startups need to understand the art and science of attracting venture capital firms to their business. There are certain things you need to do to make yourself a more attractive proposition for these companies.
When you can do these things well, you will have as much startup capital as you need to grow and have a sustainable business. This is a critical part of the process that many business owners don’t think about until it’s too late. It is one of the many reasons why Suraj Rajwani has shown the importance of explaining to startups what they need to do. He understands that it is essential for them to make good decisions during this process.
Why Venture Capital Is So Crucial
Every startup has to contend with not making money for an extended period. It usually involves many months or years where they don’t know where paying customers will come from. Venture capital is crucial because it provides the cash that businesses need to sustain themselves before doing it independently. It is an essential function of Silicon Valley and other areas. Without it, companies like Facebook and Google would not exist today.
Venture capitalists are some of the most influential people in our modern society, as they decide which companies to fund. It is why it is so vital to have a good understanding of how the process works. It is also essential to have a good account of what you can do as a startup to get the attention of these important people.
Doing Your Research
The first thing that companies can do is to focus on research. Having a good understanding of who the venture capitalists are and how to influence them. The majority of them will have some public information you can read about, and you will get to see some of the ventures they have funded in the past. There are also general business concepts you need to understand, and this should be enough for you.
However, as with everything in life, it all depends on your ability to sell your ideas and persuade them on a logical and emotional level. After all, venture capitalists are humans too, and they will be prone to emotions like everyone else. You have to tap into those emotions and use them to get the results you want.
Putting Together a Great Pitch
The next thing you need to know is putting together a great pitch is crucial. Suraj Rajwani likes to emphasize how important this is. Your pitch is going to be the difference between success and failure. He thinks that pitches are what make venture capitalists decide whether to fund your company or not. It is also the best way of grabbing their attention.
When you give them the perfect pitch, you are more likely to get a call back than not. It is something that many entrepreneurs don’t understand how to do, and it is what seals their faith in the end. If you don’t want a company’s failure, you have to be good at pitching to venture capitalists. It is something that will make or break your career.
Creating a Prototype They Believe In
When doing your pitch, a crucial component of this is demonstrating your product or service. Having a great prototype is vital for physical hardware products. You want to showcase what you will make, and they have to see how it will work. All of these things must come together to give you the best chance of getting funded.
Prototypes need to be professionally made, and you have to put as much time and effort into them as you possibly can. You might even need to make a particular version of your product for your pitch. It might seem extreme, but it is the difference between success and failure for most companies.
Proving Your Market
On top of having a good product, venture capitalists also want to see that you have a market for your product or service. That means you will have to convince them that what you are selling is worth their time and effort. You have to go in and provide that product or service for them when they want it.
If you can do that well, they are more likely to give you the results you want. No product will sell without a market. You want to ensure that you show that a market is there for your product.
Knowing Your Numbers First
If you have any sales, you need to have a good idea of your numbers. They want to see that you know the financial skills necessary to run a business. They don’t want someone who is flying by night. You have to be someone they can trust, which means having an excellent understanding of how your business runs and makes money.
When going in to get funding, you should have enough financial accounting skills to talk comfortably about where your business is with finances.
Showcasing the Talent Of Your People
Another crucial and vital thing that startups need is talent. Venture capitalists want to see the talent you have working for you when you make your pitch. They are willing to fund companies that they don’t know about if the talent is there.
This is because they see themselves investing in you and your ideas. When they can see that you will be a good investment, they are more likely to fund your company. It is one of the many reasons why it is crucial to have a smart team around you at all times.
Rawaj Sajwani via FoxChronicle.com