The most important thing for any entrepreneur to understand about venture capital firms is that no matter how busy you happen to be, they are almost invariably busier. It’s not unusual for venture capital firms to see literally hundreds of business plans come to them in a single week; naturally, they couldn’t read them all even if they wanted to. As a rule of thumb, unsolicited business plans are rarely, if ever read.
In order to have your business plan read, you have to be able to get the attention of venture capitalists, which calls for a winning communications strategy and for that matter, a winning business strategy. There are four things which more than anything else, are likely to help you catch the eye of venture capital firms and receive the funding you need for your venture.
Click here to learn more about venture capital pitch <==== 1. A management team with a history of success: If your management team has a great track record and especially if they have a reputation for getting startups to grow, make sure that everyone knows. Mention them in your emails, your business plan and of course, in your elevator pitch. One thing to keep in mind here is that a lot of venture capitalists will pay a lot more attention to who's on your board of directors than they will to anything else about your company. 2. A high concept pitch which immediately makes people understand that your business plan is a winner: Your high concept pitch should be a short (just one or two sentences) and compelling statement of purpose with two important elements: an idea which will be familiar to your audience as a viable business venture along with a twist which will ensure it a place in the market. You should be able to get your high concept pitch across in about seven seconds and certainly no longer than ten. 3. A direct referral: There's nothing better than a personal introduction and recommendation from someone that the venture capitalist you're targeting knows and trusts. Anytime you get a referral, it should be followed up on and promptly. When you get a few minutes (or seconds) of a venture capitalist's valuable time, take full advantage of it. Always keep your business cards with you and rehearse your elevator speech and high concept pitch so you're ready to deliver it when opportunity knocks. Click here to learn more about venture capital pitch <==== 4. Have a solid elevator pitch: In case you're not familiar with the term, this is a brief (under one minute) pitch which explains what your business does and how, the rate of growth in your industry and how you plan to claim a substantial share of that market. Essentially, it is a condensed version of your business plan. Have yours memorized and ready to give at a moment's notice.