By Fernando Berrocal

There are several kinds of stuff that Venture Capitalists (VCs) would want every founder of the different startups that they analyze to know about. In the present article, we will mention the top 5 tips that the VCs wished you knew so they can optimize their time and get to know in a better perspective your idea and how this can become successful.

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• Share your unique perspective of your Startup Idea: Take a moment to think about the unique perspective of your Startup Idea very carefully. What did you learn that differentiates you from other startups in the market? Investors want to know why you're taking the left path while the other entrepreneurs are taking the right one. What is the one-of-a-kind insight you've discovered that has driven the essence of your business? For example, you can express what your distinctive perspective is and take into consideration what investors would want to hear in your elevator pitch.

• VCs Evaluate your Capacity to Sell:  Investors understand that if you operate a B2B corporation, you must “sell” to potential early adopters. Whether your firm is B2B, B2C, or something else entirely, you still need to “sell to people” to get crucial recruits, essential partnerships and suppliers, and maybe even a lease from your landlord. To get your business off the ground, you'll need to persuade others to believe in your vision, get them enthusiastic, and help them overcome their fears of taking risks.

On that note, you're selling when you increased; don't be misled. Consequently, investors are assessing your capacity to sell. They're evaluating your abilities to enthrall, persuade, and close your audience. They need to know that you'll be able to spot sales roadblocks and close transactions. Raising money from a VC is similar to selling, the only difference is what you're trying to sell. You're selling stock, or debt, in your business rather than a product or service. Investors will have reservations about your capacity to "sell" or "trial close" clients, partners, or early team members if you can't "sell" or "trial close" them. Not sure if you should sell? Improve your selling abilities by studying the numerous books and videos. Alternatively, appoint someone else to be the primary pitcher.

Here's how you should close an investment on the spot. “So, is this something you feel you would like to get behind after all?” you might say at the end of your pitch. If the investors hesitate, say, "OK, can you tell me the two or three things you'd need to see to invest in this startup?" This demonstrates that you're at ease with "trial closing" and are the type of entrepreneur who actively seeks out "obstacles to sale by any means." It set you apart from other entrepreneurs and demonstrated your sales abilities quickly.

• VCs are “swinging for the fences” when they invest: If a VC joins forces with a founder and makes a substantial stake, they expect a large return in the long run. You can try to persuade them that there is no benefit without danger by saying, "Don't forget, this is a high-risk, high-reward industry." When potential investors meet with you, they want to know if you're going for the fences as well. They want to hear about your big vision and how the corporation will appear in the next three years. Understanding how the world will change now that you're in it is critical for investors. How are you going to develop a large, influential business that "sucks the oxygen out of the room" for the competition? As a result, conclude on a crescendo after your pitch. “We hope you wish to invest and join us on our journey.”

• VCs are looking to see if you're in it for the Long Term:  Are you planning on staying to complete the aforementioned mission? Building a business from the ground up is both thrilling and challenging. It takes a great deal of endurance. This isn't a sprint; it's a marathon. Founders that are in it for the long term, as opposed to mercenaries out for a quick buck, are missionaries. Investors are trying to figure out if you're going to stick with this one for the next 5-10 years, despite the ups and downs.

On that point, they're looking to determine if you have an intrinsic love for something that will keep you going when things become tough. Do you have a personal connection to the issue that will motivate you to persevere? Do you have a competitive streak that makes you want to succeed? Investors want to know why you established your business in the first place, what drives you, and how you plan to become a force to be reckoned with.

• Directly and Simply Respond to Questions: When investors pose a question, entrepreneurs generally dance around the answer. Or they'll lie to investors if they don't have a good response. Before responding to any question, try to understand what the investor is asking and why they are asking it. Provide straightforward, concise responses, then expand as required. Tell the truth and get down to specifics.

It's advisable to give “Twitter-length” responses and wait to see if the investors want you to go into further detail. Don't be afraid to confess when you don't know the answer; nevertheless, keep in mind that if you do, investors may ask you to describe how you would approach a problem. Take any questions you can't answer as an action item and follow up as soon as possible.

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Ready to bring your startup to the next level? Apply to MassLight’s next batch. MassLight supplies capital and a dedicated tech team. We take equity in return. Have questions? Refer to our FAQ page.

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