10 Commandments For Entrepreneurs
October 15th, 2007
Allen Morgan has another very astute article for entrepreneurs on the do’s and don’t of seeking venture funding. He’s come up with 10 commandments, (well, 13 to be exact). They are paraphrased here:
1) Connect with the partner in the VC firm who has the closest investment interest to the space your startup is going after. But be introduced to the partner first, rarely do they accept plans over the transom.
2) You will have about an hour to make your pitch, be on time or better yet.. arrive EARLY.
3) The goal of your first VC meeting is to get a second meeting, not to secure funding, so your presentation should tease, not overwhelm.
4) Typically you’ll have 1-3 partners in attendence, know them and their backgrounds well.
5) Get to the point fast.
6) Explain your idea by contrasting it with old ideas.
7) Have 13 slides max but be ready to do your presentation in just 10.
8) 3 Most important things to a VC is the team, the team, the team. Admit what you don’t know, take note and get the answer, don’t fake your way through it.
9) Know your competition well. If you have too few competitors, you probably don’t have a business. Too many competitors is just as bad, find a new business.
10) Control the meeting but be smart about it.
Full Article on the 10 Commandments and to find out the remaining 3.
