Even though it is ten years old, the PMARCA Guide to Start Ups is still exceptionally useful. Today let’s look at one of its key points about venture capitalists. They want to reduce risk.
So, as a founder going to meet with a VC, what Mark Andreesen recommended back in the day still makes a ton of sense: First, demonstrate that your market exists. Read his ‘The Only Thing that Matters’ post for more here.
Second, show that you’re the right founder. This is where your skills as a communicator are essential. Andreesen recommends that you:
- Show that you’re in the flow of conversation on your industry topic. When you have a provocative and unusual point of view you’ve got a great foundation for delivering intelligent content via your social and owned channels, giving great talks, and doing media interviews that are actually compelling. When you throw down with a POV that turns our heads you will shift the flow of the industry conversation toward your voice and your business.
- Show potential funders the way you think. If you’re going to effectively demonstrate the quality of your thinking you need to be able to clearly describe your thought process. This requires advance preparation. Even if this doesn’t go in your deck, you’ll get asked. And of course during the Q&A VCs will be testing you to see how your brain works in real time, which brings us to the next point.
- Command the tough Q&A. First, anticipate questions and prepare answers. Second, secretly ground yourself in your body just before the Q&A begins – a few breaths, planting your feet, whatever it takes to help you get ready. Your mind knows the answers. Your body just has to deliver them! Remember – a bunch of tough questions is a much better sign than no questions!
- Don’t be naïve about your business model, your expectations, or potential competition. Road test your conclusions and your messages on these points with skeptical, jaded people. Lots of them.
The right messages are every bit as important as the right thinking in any discussion with a venture capitalist. It may feel like a separate work stream to create and test those messages, but it’s absolutely vital. Respect what the process requires of you and you’ll succeed.
Your business must scale, and you must scale with it. You need to hire a great team, forge strong customer relationships and lead your market with a powerful point of view. You can do none of these things without exceptional communication skills. Click here to receive pragmatic communications advice in your inbox every month.
