How to Attract VC Investors 101
As entrepreneurs work to grow their business they all have one common need, additional capital. One common solution is to pitch your idea to a venture capital (VC) group. The literally one hundredth million question is, what are these investors looking for? There are even conferences today that offer a chance for entrepreneurs to pitch their company and its ideals to multiple VC groups. Given this, entrepreneurs are compelled to study the similarities that investors share, while simultaneously understanding there are differences as well. There are many things that would be considered, experience of the team, effectiveness of the business model, etc. A newer focus though is in the area of the customer, an area that was overlooked terribly in many of the VC investments in the 90’s. A thorough study of the customer base includes asking questions such as what compels the customer to buy the product, as well as, what problems are solved for the customer by purchasing the product? Even better, do customers want to invest in the company? A thorough understanding of what drives VC investment will certainly increase the chances of the check being written.