Venture capital (VC) funding often offers the greatest funding opportunities—but is also notorious difficult to secure.
At our Investment Conference, David Fisher from Edge, Paul Excell from ScaleUp, Will Fraser-Allen from Albion Capital, Roshan Puri from Calculus Capital, and Philip Edmonson-Jones from Beringea had a lively panel discussion on what it takes to succeed as an entrepreneur seeking VC funding and what VC firms can do for a business.
London is ‘awash’ in investment money.
There’s never been a better time to seek VC funding in London, so entrepreneurs with a solid business can afford to be a bit choosy. Rather than approaching as many firms as possible and seeing who bites first, consider narrowing your contacts down to the firms would be the best fit for your business.
VC firms offer more than capital.
Why does a firm need to be ‘right’ for me? Don’t they all give out money? Actually, VC firms can provide much more than money. The right VC will have contacts, experience, and inside knowledge relevant to your business—more like a business partner than a cash machine.
Focus on your market and understand your competition.
Your business itself—the concept and the team—are important, but don’t forget to demonstrate your knowledge of your market and your competitors. Show that you can monitor and learn from both.
To scale quickly, you need strong leaders.
This includes non-executive positions. Everyone on board needs to be ambitious.
The business model is more important than the sector.
A handful of sectors such as fintech and healthtech are hot right now, but more important than your sector is your fundamental business model. Can you prove that it works? Is it scalable? Does it retain customers? Sector trends come and go, but the underlying economics of your business will always determine your success.
Fewer than 1% of companies succeed in securing VC funding, but if you believe that it’s the right funding option for your business, remember to choose the firms you approach wisely and focus on the underlying dynamics of your team business model.
Meet VCs and other funders at our Christmas Networking Soiree with Funders on 12th December. The event will be held at WeWork Moorgate and begin at 6:00 p.m.! Don’t miss it – get your ticket here!