Opportunity strikes only once – so you got to find them and capitalize on them. If you can’t find them make them.
Venture capitalists – VC as they are commonly referred to are the godfathers of this century. If there ever were angels on earth, who could turn the fortunes of start-ups and newborn companies into billion dollar worth of moguls, then Venture Capitalists would be these. Capitalism has seen economies rise and develop at breathtaking speeds, and much of the praise is heaped on the Venture Capitalist-funded companies. As the name suggests these are the cash-rich agencies who invest the money in organizations that they find promising, who they believe would, over a period, end up giving them huge return on investment.
In today’s day and age, technology has become a staple diet, a virtual appetizer of each and every human being. Startups have thus been born, nourished and grown into large corporate thanks to these Venture Capitalists. Almost daily, we see some or the other technological breakthrough leading to a merger or acquisition of a startup with technological giants. Seeing all such hunky-dory, an idea of creating your startup, establishing a business and transforming it into an empire must have knocked everyone at some point in time.
Every problem poses a business opportunity, a potential that needs to be tapped and capitalized. However not every idea is viable, not every idea is feasible, economically or administratively.
Hence, it is advised that before pitching up the idea to a venture capitalist entrepreneurs should make a thorough and systematic study of their idea. A sure shot death knell would be to go blind.
Apart from the feasibility study, the scope of the idea, execution plan, economics, current market situation, there are nitty-gritty of the venture capitalist firm itself that entrepreneur shouldn’t overlook. Just like before giving a professional interview, one is supposed to have knowledge about the company, its work culture, ethics, business standing and work; an entrepreneur should have detailed study of the venture capitalist firm as well. A VC that funds social sector would be hardly excited if your business idea is about space technology. Coherence and relevance have to be maintained.
At the same time, if your idea doesn’t fall within the ambit of the VC, it can still be entertained by the firm provided it is a cutting edge technology. Blue ocean strategy, as they say, is an ideal paradigm for pitching an idea to a VC. Creating a new market altogether and dominating the share is a dream of every VC because that guarantees multifold returns and turnover of billions and trillions of dollars.
If you are convinced of the underlying potential of your business idea, it would be worthwhile to go ahead and passionately pitch it to every other firm that shows the will to listen to it. No harm done by pitching with real intent and purpose. However, ensure that your target is right and relevant to your idea. One off case do exist where in spite of a great pitch and apt answers to probing questions, few VCs will remain circumspect and speculative of your idea. But those are to be considered as stepping blocks towards the final destination.
“Sitting still and wishing makes no man great; The good Lord sends the fishing, But you must dig the bait.”
An innovative idea that is a solution to a common problem, economically viable, sustainable plan and confidence in your abilities are the basic prerequisites that must be met to seal the deal. Interviews will be tough and by no means a simple examination type Q&A. Various factors that you might not have thought about before might crop up and be brought to light, you would have to take them all into consideration and rework your strategy.
Pinpointed answers will only help your cause, and honest replies would be the need of the hour. Most importantly it will be a journey in itself and one worth all the effort – Hence give it your best shot.