I have reached out to over 1,000 VCs, and here is what I have learnt.
Every route in gets the same answer
Direct, cold, warm, mate's intro, foot rub. All the same response. Useless.
From a £150m fund, the average VC seems to invest in 20 to 30 companies. On average they will see 3,000 deals a year and invest in fewer than 10. There simply is not enough cash to go around, especially in the early stages.
VCs are overwhelmed with deal flow and can't (don't want to) manage it.
What actually worked
I saw the successes come from clear, exciting and concise email copy. Light and to the point.
No brokerage platforms work consistently. It's still a finger in the air.
The only "hack" is more brains working on the problem. One of the big tech giants has 150,000+ brains working on its problems. You have... two?
The only way to raise funding is to allow yourself the time to complete a round (up to nine months) and make sure your business dedicates time to raising capital as part of its USUAL BUSINESS FUNCTION.
Most companies have an advertising department or a marketing department. Fewer than 1% have a fundraising department.
Seek experts. Make that your priority. Stop working with success fee brokers; they are a waste of time. Own your fate, own your process.
Do you actually look like a VC deal?
Want VC funding? Ask yourself these questions:
- Am I an exited founder?
- Was I one of the first 50 employees at a unicorn company?
- Have I just left a senior finance position at a top institution?
- Are any of my close friends or family working in VC?
- Do I currently hold a strong position in a unicorn company?
If the answer is no, you need to work 100x harder.
Stop reading the news articles and build a business that serves you first, and investors second.