Bill Morrow, founder of the Angel Network, outlines 5 top tips for entrepreneurs seeking funding from VCs:
- Make sure you can explain your business quickly and succinctly. If it takes you more than 5 minutes, then you’ve yet to get it nailed. Back to the drawing-board for you!
- Outline the pain that your product or service will solve.
- Explain how your business will solve this pain.
- Enthuse investors with the opportunity for growth and how you will achieve this – how will your business scale to achieve the 5x + return on investment for your investors?
- Set out clearly how you will spend the money that you are requesting.
Morrow also explains how it helps for entrepreneurs to “humanise” interactions with potential investors, where possible. If you can build rapport by indulging in a bit of chit-chat about the cricket or football etc then this helps build relationships beyond business. After all, you may have to work with each other over a number of years, so its important that you can get on outside of business-talk.
Good advice. Listen to this podcast in full over at Smallbiz pod.