You’re at a big event, lots of investors are there – how do you optimize your chances of getting an investment from a VC or angel investor? Follow these three steps (and do not stray).
Your goal is to get a meeting. You’re not going to close a deal right there on the spot- understanding that and what you’re trying to achieve is essential. Securing funding is a multi-step process- you only need to take one step at a time. Step one is getting that meeting. So, on to the process:
1) Do not, and I repeat, do not walk up randomly and pitch them on the spot. (Aka Don’t pitch me, bro!)
VCs are busy – even if they are standing there alone, it’s been a full day of meetings meeting new companies or working with current ones. Their brain is full. They are probably tired. They probably don’t want to hear about your business – even if it’s a deal of great interest. If that’s the case, why are they there? For one, to keep current contacts fresh – to say Hi, ask about progress, see other VCs- ask about deals, etc. But, they are also there to meet new people… so, how do you meet them?
2) Get an intro from another VC, Angel or Portfolio Company.
Social validation is your best friend. Getting an intro to a VC is old info, but it’s far and away your best option. It is also rarely how companies approach me. Your chances of gettting a meeting go up exponentially if you’re introduced. Case in point- I was at the Seedcamp party last week. I’m chatting with the Seedcamp team on how the week had been going when a VC walks up to me with an entrepreneur in tow- he says “Sorry to interrupt, but I wanted to introduce you to Mr. X. I think they’re doing something great that would be of interest to you. How about I send you an email next week to connect you two?”. And that was it. The chances of Mr. X getting an HOUR of my time the following week was 100% at that point. The gain there is huge – my undivided attention and a full hour of it. Not 15 min in a loud venue, with no demo, no deck. And probably no deal.
3) Walk away.
Once you’ve made contact and made a good first impression – get out of there! In the above example, the entrepreneur simply shook my hand, said hello, and said he’d look forward to exchanging info. That’s the perfect thing to have done. I stopped him later in the evening, asked where he was based, and started checking dates for a meeting.
Now, you’ve got the meeting with the VC – what do you do? Prepare your slide deck and demo. I’ll post next week on my thoughts on the perfect pitch.