VC Minute – quick advice to help startup founders fundraise better.
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It may seem to you that after spending the last 30 to 60 minutes pitching your business to a venture fund that you obviously want them to invest in you. But it may not be obvious.
Believe it or not, I heard of a case the other day when a startup nearly missed out on getting a lead because the fund didn’t think the startup was keen on working with them.
I’ll share a story with you I heard somewhere along the way in my sales career. A local guy was running for a local political office. He ran a good campaign, but he lost. Afterwards, he’s talking to his neighbor and as he’s bemoaning the loss, he says, ” well, at least you voted for me.” And the neighbor looks down sheepishly and says, “well, the other candidate, she asked me to vote for her and you never asked me to vote for you.”
How are you going to get the sale if you don’t ask for the close? How are you going to get the investment if you don’t ask for it?
Tie it in with why they’re a good fit for you. Why you’re a good fit for their fund. It can be as simple as, ” we think you’re a great fit for our business because of your investment in XYZ, and your expertise in our industry. We’d love to have you involved and welcome your investment. What are the next steps in your process?”
My grandmother, who was an amazing woman. She always said, “you never know, unless you ask.” You never know if you’ll get the investment unless you ask. You can thank my Grandma for that one.
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