Every startup owner recognizes the difficulty of securing investments from venture capitalists. For many entrepreneurs, the process of applying for financial support requires a special set of skills that will help them secure the investments. And while this is generally true, some people tend to overlook a lot of simple things that can boost their chances of getting what they need.
In the past, for instance, seafaring traders and explorers were able to secure capital from the early versions of venture capitalists even without the help of grandiose presentations. One of them was Christopher Columbus, who received financial backing from no less than King Ferdinand and Queen Isabella of Spain.
Initially, one might argue that any monarch would spend a fortune to support an expedition that seeks to explore a new frontier. At a closer look, however, it can be deduced that spending a lot of money to finance a very risky venture is a madman’s decision. If so, how did Columbus persuade the king and queen to support his expedition?
The answer is complicated. But it should be emphasized that the idea of exploring a new frontier is not the only thing that he presented to the royal couple – he also provided them with information that helped him gain their trust.
In the field of venture capitalism, everyone must remember that trust is a very important element. The reality is that there are a lot of people who have the money and are willing to invest in various promising ideas. Despite this, however, there is still the idea that it’s hard to secure investments. This is true, but the reason is not because of the lack of funding but because of the lack of trust on the part of the venture capitalists.
As an entrepreneur, you must follow the footsteps of Columbus. Do not just present them with your ideas. Instead, give them information that will gain their trust. Moreover, try to treat them as monarchs.
Keep in mind that a private meeting with potential investors usually signals their belief on your ideas. Do not spend your time selling your proposal. Rather, use it to assure them that you will succeed with the objectives that you have already laid on the table. Focus your pitch on your team’s qualifications and guarantee them that you are capable of expanding the business using their investments.
Here are some things that you can do to gain the trust of your potential investors:
1. Exhibit extensive knowledge on the nature of your proposal;
2. Assure them that you understand the importance of every centavo that they invest on your company;
3. Provide them with accurate information about your previous venture, partnerships, and accomplishments;
4. Tell them everything that they need to know. This includes not just the positive aspect of your company but also the problems and challenges that you might encounter; and
5. Do your best to work with your investors. Have a shared view of success and promise them that you will be responsible in handling their investments.
There are various things that you can do to gain the trust of your potential investors. Just keep in mind that you have to do this as early as possible to assure the success of your fundraiser.
More detailed information and useful advice can be found at Funded.com Created by Mark Favre, it offers expertise and assistance with developing and funding your concept, including a private forum for queries and discussions. If you need access to investors and funding providers, please do check our website.