The most common reason entrepreneurs aim to partner with venture capitalists (VCs) is because they need capital to take their businesses to the next level.
It’s natural if you’re mostly focused on the financial side of things. But don’t forget that a VC can fuel your success in other ways that are not directly tied to money.
Tips for Future Investment Rounds
It’s never too early to start thinking about raising more money through future investors.
Your VC may have worked with some of the same investors you’re thinking about approaching soon. And might be able to give you advice on the kinds of things those all-important people will expect from your pitch.
Additionally, a venture capitalist can lean on his or her own experience and tell you tales of seeking capital. This will allow you to learn from those personal successes or shortcomings.
Before you start approaching new investors though, ask if you can present your pitch to current investors and get their feedback. Many entrepreneurs miss out on the chance to do that.
They don’t realize the resultant feedback could be invaluable and make it possible to avoid issues that might reduce the likelihood of success.
Growing Your In-Person Network
Meeting new people comes as naturally to a venture capitalist as breathing. In most cases, their success depends on how well they can get to know other individuals and build rapport with them.
You can feel confident that any venture capitalist you work with will have a larger network than you do.
Even better, that person knows people that you don’t. By partnering with you, he has shown a confidence in your product or service.
That means that if individuals have put their trust in a VC who has partnered with you, they’re also more likely to have good impressions of you and your business because they know the VC believes in it.
One of the smartest things you can do as an entrepreneur is to show an openness to receiving the advice of individuals who want to mentor you.
In many cases, your VC will serve as a mentor. But people the VC knows who haven’t met you yet might also dispense valuable insights.
When you simply make it clear you’re ready to learn from people who are willing to pass what they know onto you, the knowledge gained as a result will likely be instrumental to your success.
Tips for Gaining Social Media Traction
One great thing about social media is it gives you nearly unlimited chances to connect with people and make positive impacts on them even if you never meet. Besides making your in-person network more substantial, expect that your venture capitalist could increase the size of an online social network, too.
Chris Sacca, the founder of Lowercase Capital, has funded numerous startups and provided the respective entrepreneurs with worthy advice. You can learn by example while looking at Sacca’s Facebook feed.
It’s followed by thousands of people, and Sacca regularly updates it with diverse content. In Sacca’s case, it’s not necessary to only talk about things that matter in the investing world.
This professional resonates with his audience by bringing up matters that are important to society at large, thereby increasing his reach and establishing himself as a thought leader.
Perhaps you’re at the point where you’re trying to build the upper-level management team for your startup and having some trouble convincing one of your most desirable candidates to take the job. In that case, your venture capitalist could come on board and give a big-picture perspective of a company while describing why the individual you’re courting is perfect for the job.
It also helps if your VC has clout due to being associated with several famous companies or people. The VC demonstrates by association that he or she thinks what you’re doing is very worthy and will likely result in major profits.
When a job candidate sees that an experienced VC thinks your business has what it takes, that person may realize that the option of working for you and helping to steer the establishment in its future direction is quite an appealing possibility.
Recommendations for Business Advisors
Maybe you’re in need of a lawyer, accountant, or another member of your business team and are feeling overwhelmed about which person or company to choose. After all, doing a Google search to find service providers is typically not sufficient.
However, you could let your venture capitalist know you’re ready to grow your business team and want to get in touch with people who may become your new advisors.
Hopefully, the VC will have directly worked with professionals who possess the kind of knowledge you need, allowing you to feel more equipped to contact them and explain the situation.
As you can see, the things a venture capitalist can provide span beyond financing. That’s why it’s so important to deliver a polished and earnest pitch that makes a VC eager to partner in your success.