A common question I get asked often by entrepreneurs is, “How does one get access to a venture capitalist?” I’m sure it is not easy, but it can’t be that difficult either. As one VC remarked, “If the guy wants to really get to me, he’ll find a way.” I quite agree with that. Also, no offence intended, but a lot of entrepreneurs incorrectly assume that every new business idea warrants VC funding and that the only reason those ideas often don’t get funded is because they could not reach out to a VC. Truth is, while many ideas are potentially interesting business models, not every model/business is necessarily a VC-fundable business.
Going along with the ‘access to VCs’ problem, yet another common refrain with entrepreneurs is the need for a forum or platform that connects VCs with entrepreneurs. I half agree that such a forum would help — Proto.in is a good example though it is not intended to be a matchmaking platform. However, whether a formal set-up would actually lead to more startups getting funded, I seriously doubt. TiE has tried it and met with limited success. Why it wouldn’t work is better explained in a recent post — Why isn’t there a network or hub connecting venture capitalists with startups? — on Ask the VC, which is a very cool blog run by Brad Feld and Jason Mendelson. Do bookmark the blog. It is a useful source of information answers to most questions an entrepreneur would have pertaining to venture capitalists.
In my opinion, an email containing a brief summary of Idea, Team and Execution stage is enough to land meeting with a VC. It is still advisable to check the LinkedIn profiles and get introduced. It’s as simple as that. But before introduction, check if the fund actually provides that size of money you need or funds the sector you are in.
Hi Abhishek, thanks for writing. That is good advice indeed.
funnily enough, vc’s also ask “how to get to the start-up?”
and cold calls should be the last resort.
Hey Qwerty, welcome. Keep coming back.
Qwerty, I have seen even VCs giving cold calls to Startups and I have never seen a VC feeling awkward or upset, if an entrepreneur happen to bump into them in a conference or gathering and start pitching their idea. IMO, it’s neither surprising or unusual. Finally what matters is, if they are good enough for each other.