The shortcut to raising vanture capital for your startup
Is there a shortcut—an easy way—to raise venture capital?
Sort of, yes.
As we hear constantly, there is a vast amount of capital looking for ideas that will change the world.
And that’s the key.
What do investors believe will transform our world?
(Hint: it’s not a marketplace for pet owners.)
Let’s look back at recent decades. Where was the money focused?
1990s: The Internet and Enterprise Software
2000s: Search, SaaS and Social Media
2010s: AI/ML, Gig Economy, Fintech, DTC, Enterprise SaaS
2020s: AI, Robotics, Web 3.0, Sustainability
Don’t forget, investors have their own theses.
They invest in themes, “megatrends” and specific technologies.
Are you in the “right” area?
Relatively speaking, talented founders who are working in the right areas have no trouble getting meetings.
If you’re NOT getting those meetings, it may NOT be because you suck (although no promises). It’s probably because you’re working on “the wrong thing”.
So what?
Here’s what to do next:
First, understand what investors are interested in.
- If you’re in the right area (i.e. working on something truly transformative, with a great team, key differentiator, decent traction and—most importantly—”megatrend” tailwinds) don’t hold back.
- If you’re NOT in the right area and want to change the world, stop what you’re doing and get a job with a company that IS. Build your experience and credibility. Try to get some skin-in-the-game.
- If you’re building something else (something that could potentially make you and your investors “millionaires”, but that doesn’t fit into the current trend) forget VCs completely.
Don’t waste your time.
Instead…
- Cut your projected costs
- Niche down
- Sell ONLY to your ideal customer profile
- Use ICP feedback to build what people really want
- Stay lean and focus on revenue (and profit)
- Repeat, then work out how to scale
- Introduce processes and best practice
- Reduce your company’s reliance on its founder
- Keep growing using non-dilutive capital
- (Or perhaps raise capital to pour fuel on the fire)
- Start enjoying the dividends
- Maybe identify potential acquirers and cash out
- Or keep going and enjoy being an entrepreneur
If I was starting again, I wouldn’t build a company investors want.
I’d build a company for me.
Doesn’t that sound appealing?
