Over a coffee with Shahin Khan and Yanni Kalajakis a few weeks back Shahin, who can unfailingly identify a technology value proposition, pointed to a challenge that founders of technology firms have: netting out what their product does both well and better. It is an issue that, we all agreed, we see in 90% to 95% of the firms with whom we talk.
It’s not uncommon for a VC to scan 50 – 100 investment proposals a week. A small percentage are invited to present in person. Though California’s Silicon Valley is tied with Massachusetts is providing the easiest access to capital in the US, if you can’t readily lay out what your offering does well and better than other competitors you will politely be shown the door.
Kevin O’Leary is an entrepreneur-investor who regularly appears on Shark Tank and Canada’s version, The Dragons’ Den. I recently saw this 2-minute interview clip of O’Leary explaining is three golden rules for starting a business and attracting investment. The video clip is front-ended by a 30-second commercial (sorry) but worth watching. For future reference, O’Leary’s three golden rules for successful fund raisers are:
- Master the 90-second elevator pitch. The opportunity can be clearly and simply laid out in 90 seconds or less.
- Prove that you are the best person to execute your plan. You have the history, know-how or special expertise to pull it off.
- Aim at a growing market. Expanding markets are forgiving and headed in one direction. A great idea in a declining market will have you continually swimming against the current.
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