Courting venture fundsPosted: August 18, 2007
A few months ago I had the opportunity to take part in a venture briefing round and it was a wonderful learning experience. In this article I will try to outline some of the basic necessities of a successful venture briefing.
We are all human and clarity of articulation is key. How well do you get your value across to the listener? A one page executive summary that highlights your value statement in a single paragraph, outlines your core team, provides an understanding of return on investment and tells very clearly what you want is crucial. Your investor presentation should cover all the key areas, but use real life use cases (even hypothetical) to explain, as they can be more easily related to.
Make it easy
Make it easy for the investor to trust. Build the focus of your operations close to the investors so they feel comfortable and can also help you. Intellectual property should reside in the US is US venture is being sought. Your Core team should be in the US if you are saying that it is the primary market. There will always be a thorough due diligence… do it in advance for them and be honest. This will help you find all the objections the other party may have in advance. The CEO must be a dynamic person that instills trust. At the end of the day it is the CEO that returns the investment.
Timing is crucial. Do not ask for funding that is needed next month and don’t ask for money that is needed in a years time. Do not go on tour before you are prepared. You will only loose that contact and at then end of the day there are only a limited number of funds available.