Today I’ll continue with my series on the Entrepreneur’s Guide To Venture Capital.
What To Do In Your Meeting With A VC
Lose Your Ego
Nobody wants to work with an egomaniac. As entrepreneurs, we tend to be passionate about our companies and many of us have a certain amount of ego. Don’t let it get in the way of your company’s success. Be open and listen to the advice and feedback you get from the venture capitalists. Show them that you’ve made mistakes in the past and that you’ve learned from them. You have a long memory and won’t make the same mistakes twice.
Get To The Point
Be able to succinctly explain what your business does and why it represents a great investment opportunity. This is otherwise known as the “Elevator Pitch.” Imagine that you’re on the top floor of a building and you get into the elevator only to find that a potential investor also gets in the elevator with you. Now you have from the time you get on the elevator on the top floor to the time you reach the lobby to convince the investor that there is something of value in what you’re doing. Have a 60 second pitch ready as well as a longer five minute version and get to the point when you go to your investor meeting!
Back Up Your Numbers
By the time you get to the meeting with a venture capitalist you would have sent in your business plan and attached financial plan. VCs love numbers and will scrutinize every detail of your plan. Make sure you can back up your numbers with explanations as to where it came from and what it represents! Venture capitalists too often see financial plans that have been strung together with little thought or analysis and if you can’t answer their questions about your numbers then you’ll be associated with that group of unprepared entrepreneurs. A good practice exercise is to meet with your accountant first and ask her to pretend she’s the VC. Accountants usually are very detail oriented and will grill you appropriately on your numbers.
