By Chris White-Smith
Personal record – Played 3 – Won 1, Lost 2
So mid-table mediocrity in the league of successful funding. On what basis, therefore, my right to posit about the tactics for success? Simple – Failure.
The most successful entrepreneurs fail brilliantly. Perceived wisdom suggests that if you’re not failing, you’re too cautious and caution is the first turn off for investors. On that basis, I’m in….
One chance with a potential investor, probably one minute, 5 at the most, so you’d better be prepared – prepare to blow’em away, and prepare for plenty of no’s, not because your idea isn’t great, more the ratio of opportunity to investment most make. I put your chances on average at best 1:100, so don’t fear failure. Its nothing personal.
Channel that fear to adrenalin and passion. But watch out for dilusion, a fast track to fanciful planning. Fact – Investors won’t believe your plan, however ‘genuinely realistic’ you believe. They’ll slash it, and give it the once over. If it passes first muster, they’ll halve it again. If it passes again, you’re chances just increased by a smidge.
All adds up to a massive adrenalin rush. So if you ain’t got that hit, you shouldn’t be in the room.
9 out of 10 start ups don’t make it, for a million different reasons – Investors know that too. The passion for success must be shared, so invest in your investor for value-add beyond cash – its a rollercoaster ride, and you’ve got to feel them feel it.
So my top 10 tips for maximizing your chances: (by-passing the ‘Have a great idea’ bit):
1. Prepare for no’s
2. Invest in your investor
3. Be tight with your equity
4. Borrow small. Crowdfund as last resort
5. Blow away pitch – 5 mins max to hook them
6. Prove the market in the gap – No blag…they’ll find it
7. Believe at every stage
8. Be confident and passionate, not arrogant
9. Be clear on the exit
10. Be Lucky
I was lucky once. I’ll take that…
Good Luck!