Six ways to make yourself a VC magnet

1

Be more than a big idea. Show a disciplined approach to every task and project. Investors are impressed with founders who know their finances and key metrics.

2

Attract and retain the best people for the job. Investors won’t just assess your product and business model, they’ll be looking at the team you’ve chosen. You want solid staff that will roll up their sleeves and help achieve your goals and you want to avoid the common pitfalls.

3

Understand what motivates your investors and drives decisions. Familiarise yourself with the firm and know what type of companies are listed in their portfolio. Use this insight to plan how to appeal to them and know what ‘uses’ are most attractive such as staffing or marketing and what ‘uses’ will put them off.

4

Set aggressive growth targets, demonstrate your track record and know your breakeven point. Be clear on this, investors want to visualise their return. Be realistic about projected sales and margins and consider the impact from growing business operations, rising costs or new competitors.

5

It’s up to you to know which investors are actively investing in your industry. Follow their company news, social posts, join online conversations and find ways to be mentioned. Be visible. You want people talking about your startup and what you’re doing.

6

Prove that your business can scale with demand, whether that’s infrastructure, inventory or staffing. On the flip side, be ready to answer questions on what will happen if growth slows or if costs go up.

For more tips on how to become a VC Magnet, check out episode one on the Jumpstart Series