Surprisingly, the best venture capitalists and investors don't start with the numbers.
When founders seek investments from VCs, they often believe it's all about presenting impressive financial projections and growth metrics.
But the numbers are the second layer. That's just due diligence. The most discerning VCs look beyond the flashy numbers.
So, then, how do you get to #duediligence? How do you get a VC to give you the time of day?
#VC firms seek out companies held back by constraints in human capital, processes, or technological limitations.
Places where injecting a little money can make a big difference.
Because money is what investors have an abundance of.
You know what they don't have an abundance of?
Understanding of a niche market, a differentiated and distinctive value proposition, and a clear roadmap to build a company around a problem. A clear "why."
When pitching to VCs, a clear why is your superpower. They're after massively scalable companies, and a good "why" is always scalable.
People, processes, and purchases enable growth. They don't cause it.
A good strategy causes it. You only need three things.
Before you focus on the financials, please make sure that you have a rock-solid vision, a phenomenal product-market fit, and a clear roadmap for growth.
When you articulate a powerful purpose and vision, back it up with a well-crafted #strategy, and demonstrate the potential for scaling with the right resources, you'll be well-positioned to attract the investment you need to take your company to new heights.
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