In this video, Entrepreneur Network partner Neil Patel breaks down a few tips on how to successfully secure investments from venture capitalists. First off, go in with the approach of raising just a little over what you need. If you accrue an excessive amount, down the line all this extra money will simply go back to the investors.
Next up, avoid getting passed over by investors (and getting handed that "we'll get back to you" excuse) but developing a relationship with VCs. Patel stresses not simply picking random people to fund your business, but opting for those you know better than a single, one-off conversation. He also brings up the common platitude that it's about "who you know" to emphasize the importance of networking during your business's fundraising round. Also if you can, find a co-founder to help you diversify the company's expertise and also show investors there is enough bandwidth to succeed.
Patel also encourages companies to think big in their original concept. If you're going to pitch an idea to an investor, approach them with a big idea that will present to VCs a lot of potential value, especially if they have a sizeable stake in your company.
Finally, show your passion. If you're not all the way invested in your company, why should somebody else?
Click play to hear more tips on how to approach pitching your business to venture capitalists.
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