How To Get In Touch With VCs

This is a guest post by Pedro Sorrentino on connecting to VCs in and out of Silicon Valley to The NextWomen media partner in Brazil, Startupi
phoneHaving worked in public relations for technology businesses I know without a doubt that cultivating good relationships is fundamental for every entrepreneur. It’s something I thought of today while working on some material for @proxxima and @startupi.

No one gets things done alone. It’s always recommended that you have co-founders and good mentors to help guide your business idea to reality.

Another important part of this is how to prepare to receive investment.
It has a lot to do with relationships, when it comes to getting things rolling. At the end of the day investments are not made for friendship, when we are talking about actual cash invested. But my point is that to be recognized and remembered before you present your winning team and innovative idea makes all the difference.

Looking at this recent edition (video below) of the highly recommended webshow This Week in Venture Capital, by Mark Suster, I decided to highlight some crucial points from the interview. He is “pop investor” in the US, and blogs constantly about some very good material.

Let’s look at some key points:

Asking the Investor to sign an NDA before making your pitch

Don’t be an idiot. This will kill your chances and show you have not done your homework. Your idea has little value, because what counts in the end is your ability to execute it.

It’s very likely the investor has already heard many similar ideas and he’s not going to want to compromise himself legally by being locked in to yours. Remember that investment is not friendship. It’s business and you will be expected to provide a return. I like where Suster comments in the video about how common it is for people who don’t even know each other to be working on the same ideas. So: focus on execution.

I don’t know anyone who knows VCs or can introduce me
In this case you need to have an online presence, either focused on your business or person. A blog, twitter, podcasts, a splash page for your startup – it doesn’t matter. If you don’t know people, make yourself known.

Another point is that many investors are online, using twitter, on blogs, and so forth. follow them. Interact with them. Show that you are out there playing ball, but maintain your cool. Suster says there’s nothing more inappropriate than showing up on Twitter and sending a link about your startup to a VC, without even getting to know him or her first, or having some previous interaction.

Use e-mail, the phone and other warmer methods of communication. When people are all out there exposing themselves digitally and you, as an entrepreneur, can’t make any connections, that’s a negative. Networking is fundamental.

Keep your expectations under control when you start to make contact
It usually takes a minimum of three to nine months of work (or more) to receive investment. Negotiations and evaluations, as well as legal paperwork, can take a long time. Suster says it’s important to know who you are speaking with at a Venture Capital or Private Equity fund. The speed of things can vary a lot, depending on whether you are talking to a junior associate or a portfolio director. The point is the fantasy of doing a power point and then being handed a suitcase full of cash does not exist. Things take time.

Gratitude and Respect
Remember that even if your business doesn’t end up receiving the hoped-for investment, you should always be grateful and respectful. The market is very small and news travels fast. Be cordial no matter what happens, and thank the investor for the time time he or she dedicated to your business.

I had the pleasure of interviewing Mark Suster last year, at TechCrunch Disrupt in San Francisco:

Interview Mark Suster from Pedrosorren on Vimeo.


To read the original article in portuguese, visit Startupi.

Thank you so much for this article, immensely helpful !

This is so true -
"No one gets things done alone. It’s always recommended that you have co-founders and good mentors to help guide your business idea to reality."
I needed a lot of help, mentoring and support the I started my business - I wanted several times to give up, crack down - fortunately, I had several mentors, who held me up through rough patch....

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