Wait, is that this even bodily attainable?”
Fundraising is tough for each startup, however solely deep tech startups face questions like this from VCs. Innovation typically doesn’t come with out points, and there are issues no matter how good your idea is, or how superior your expertise is.
Your pitch could be the primary time a VC has even heard of an idea, so how can they presumably work out methods to put money into your thought when it appears like sci-fi?
No one desires to put money into the subsequent Theranos
A VC’s job is to search out the subsequent greatest firm. To do that, they should perceive what the corporate does and the way it makes cash. VCs hear large claims each day and don’t need to be taken for fools.
As a end result, they often deal with new concepts with skepticism and have a tendency to keep away from investing once they don’t perceive one thing. This disadvantages deep tech and people engaged on one thing that’s actually cutting-edge.
As with every other fundraising problem, the secret is to place your self within the investor’s sneakers and construct your pitch round that.
Before you begin fundraising, it’s value asking your self: How possible is it {that a} VC will actually perceive my tech and even have heard of it earlier than? How a lot does the general public find out about this space? Is it being reported within the basic media, or is it nonetheless solely being mentioned in specialist journals?
Would a VC should be very aware of the most recent analysis in your space or have attended a specialist convention? Think about how your claims will sound in case your pitch is the primary time somebody has heard of this concept.
The factor is, even when an investor doesn’t suppose your claims are fraudulent — as was the case for years with Theranos — you in all probability received’t appear credible should you’re the primary particular person making this declare. How are you able to take care of this skepticism and assist VCs go from considering, “This is sci-fi,” to “This is the next big thing”?
You received’t get a fast sure
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