What is the best strategy to attract VCs?

Ben Narasin / November, 2017

Description

Ben Narasin, Partner at Canvas Ventures explains how to attract VCs and the importance of selecting the right investor that will help accelerate your growth.

Video transcript:

What is the best strategy to attract VCs? 

So you know there is a saying that companies are not sold they’re bought. I think that’s probably pretty true with the match between an investor and entrepreneur as well. One of the big challenges over the last 7 years has been that there are certain environments, methodologies that have sort of taught entrepreneurs that it’s all basically game and they can sort of hack that game. When you get an investor, if you’re raising a series A, if you’re going to go on and build a world-class company that is a 7 to 10 year journey between now and your IPO, that is a long time, and that series A investor and that series B investor should be on your board the entire way.

So if you game it at the beginning, in any way at all and it actually works, which is incredibly rare, you will suffer for that for 7 to 10 years. If you weren’t upfront honest finding a good match. So I want you to spend so much time with investors. I had a board that had a bit of this, those are not really fun days. It slowed the company down and it created all kinds of friction.

So I think the best thing you can do is share your vision, be honest and candid about your strengths and weaknesses, open the kimono. I mean, the more you expose, the more likely you’re going to find the right investor. The right investor is infinitely more important, then even the right firm, or the right evaluation. One person can make a tremendous difference, I’ve seen it over and over again. Never underestimate the importance of one person on your board being the difference between you being stronger and you being weaker and at a critical time in some cases difference between your survival and your death.

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QUICK INFO

  • Ben Narasin
  • November, 2017
  • 2:02
  • Funding

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