It is a clear fact that there is more competition in the market than ever before to get involved the funding system of a startup. Running a startup is not so easy and cost-effective. As an entrepreneur, you may already have an idea of the procedure, and similarly, have “find money” at the top of the priority list.
The first place to look forward while making the investment is at venture capital firms, thanks to TV shows such as Shark Tank and Silicon Valley, which represent the scenario of such businesses. As you know, you are not the only one in this race. You can face a lot of challenges from other fully experienced startups of the market, some with similar concepts and ideas like you and can ask for more money than you have ever held in your hands before.
How can you get the attention of venture Capitalists (VC)? Below are some of the tips from some extremely impressive venture capitalists of the market. Here they are:
- Fix an issue that others avoid: According to Wade Diebner, who is the managing partner of ExCapsa Group (the investment firm behind B2B solution), “Figure out where the world is going? And get there first. Make sure that your solution is developed for a specific problem that you have the expertise to address. After all, a good solution, no matter how elegant, is only good insofar as someone else cannot come along and develop something similar. Your product will need to stand up against competitors with more capital and resources, along with other assets which they can leverage. We look for startups that not only present solutions to uncrowded markets but also resist the temptation to use their early lead as a crutch.”
- When you pitch, focus on the big picture: Edith Yeung who is a partner at 500 Startups, recommends applicants to approach their pitches after a complete assessment and understanding of that industry as well as their products and services. In a blog, Yeung wrote that investors love to prefer those businesses who love how to create their identity in the market and have full knowledge about their competitors, legal environment, market, and policy changes over who just love their products. So before applying, know your main revenue and be able to speak about your business analytically at a high level.
- Create products that can catch the eyesight of the market: This is very important for any business to build only those products that give a glimpse into the future. White Star Capital is a Canadian firm and scouts only in those locations which are ignored by other VC’s Venture Capitalists but ensure that those companies can face future.
Christian Hernandez who is an investor at White Star VC, wrote in a blog, “At White Star Capital, we are openly interested in companies that see data as a competitive advantage. We want to back companies that can help collect, collate, and bring data to life through algorithms”.
While you ensure your startup is capable enough to attract venture capitalists investment, keep in mind, each of those investors can help you turning into a blooming company. Always be genuine and do your job with proper research, and keep going on, nothing can stop you!