Tuesday, March 24, 2009

4 Thoughts on Obtaining Venture Capital

The "MarketingBlagger" recently jotted down some good advice discussed on a panel made up of women entrepreneurs, angels and venture capitalists. It was a pithy enough list that I wanted to share it with you here.

The panellists included Anna Sofat from Addidi Business Angels, Shaa Wasmund from Smarta.com, Judy Gibbons from Accel Partners, Andrea Cockerton from Mudhut, Julie Meyer from Ariadne Capital and Bill Morrow from Angels Den.

-- When pitching for funding, make sure your presentation delivers “immediate grasp and immediate gasp” Andrea Cockerton, Mudhut. In other words, you need to clearly explain what your proposition is and then how it is possible to extract the commercial value.

-- Explain how you can scale up your business. An investor will only back your venture if it they can see that it will clearly cope with strong growth. If your business model requires your every attention in person, it will not be able to support rapid growth and therefore the return will be harder to come by.

-- Have a strong team in place with some industry experience. Those companies that performed the best on the evening had real industry expertise in their executive team, which is something to bear in mind.

-- When pitching, you can more or less leave out the financial predictions from your presentation. Pretty much all of the panellists agreed the figures are generally pie in the sky and investors are much more likely to invest in a person and a business idea.

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Dividends and Preferences by Hank Heyming is licensed under a Creative Commons Attribution 3.0 United States License.