Get Out There & Meet People
Venture capitalists will often acknowledge the crucial role that networking plays in the success of a startups ability to secure funding. Knowledge is power and knowing industry players and establishing relationships will be advantageous in the long run. It is equally important who you know as who knows you, it cannot be stressed enough to get out into the world and make your mark to open doors.
Teamwork makes the dream work
It is vitally important to the success of any startup to find and retain the most talented teams. Startups are now no longer limited to recruiting their human capital based on convenience to their headquarters geographic location, and some startups do not even have a physical headquarters. Reduced overheads, happier individuals and increased productivity are some of the benefits gained from the use of distributed teams. Which can explain the increased use of distributed teams, this has had a profound impact on how businesses recruit talent and increased access to great talent. Venture Capitalists want to see a company that is agile, progressive, talented and able to produce results on a small budget. They tend to favour startups that have integrated distributed teams for the reasons stated above.
Be Budget Wise
The ultimate measure of the success of a startup or any company is the numbers, if it doesn’t make dollars, then it doesn’t make sense. Startups must be mindful how money is generated and spent to ultimately strengthen their bottom line. This may mean initially forgoing expenses that may have been considered essential in the past to give the startup the additional resources to focus on growth. An office space one such expense that startups can reconsider thanks to advances in technology, a modest office space in any major city in the states will average $6000 monthly or $72,000 annually and this does not account for overheads like furniture, office supplies and utilities.
In the world of successful startups, there isn’t a shortage of stories about companies that were started in a college dorm, old garages or dark basements. However, somewhere along the line, the idea of a startup changed to pricey office headquarters with adult play areas and venture capitalists lining up to throw money in all directions. Now Venture Capitalist are tightening their purse strings and distributed teams are becoming modern throwbacks of that golden era but on a global scale, where it is possible to have the greatest minds working together no frills, just passion. The ultimate key to successfully growing a startup and securing venture capital is low costs and early cash flow.
Perfect Your Pitch
There is a lot riding on a presentation to potential investors. A business plan has the potential to make or break a deal. Investors will feel more comfortable writing that check when they are confident that the investment is sound. Your job is to demonstrate comprehensive knowledge of your plan and demonstrate that a measurable strategy to accomplish your goals is in place. The burden of proof rests squarely on your shoulders. Share your vision for the company, highlight your team members, prepare for every possible question, provide insightful market information about your market, competitors and target audience. And as hard as it may be, try to stay calm cool and collected, Good Luck!