How can I gain interest in my project from Venture Capitalists?

Are you sure you need startup cash?

First off, are you 100% sure that you cannot bootstrap your startup into at least the initial launch? Have you looked at all options? Most ideas can get off the ground with only a few extra hours of work a night. Maybe you need to search for a more technical co-founder who can help you get it started? For some of us it’s difficult to work from home. If that’s the problem then hop on Craigslist and search for a cheap office space. I once rented a 90 sq ft office for $240/mo. For some people this is necessary but if you can handle the distractions of the home office, that it generally the best option.

Represent your product or idea in a creative way

So you’ve analyzed all the options and you have decided that venture capital is the way to go. The first thing you need to do is create a digital representation of your product or idea. Before contacting venture capitalists, create some kind of video demonstration that gives a nice overview of the project, even if it’s just a short windows movie maker slide-show. This is where it helps to have a designer as a co-founder. I think production value is very important in showing the VC that you are capable but you need to create the video as cheap as possible. Maybe you have a friend with video editing skills that owes you a favor? Maybe you can trade some work? Whatever the case, this is an easy way to get your idea across to potential investors.

Why would a VC ever respond to my email when he gets 100 a day?

Many venture capitalists will read every email that comes their way. Emails are important to them because they are always looking for great ideas. Every unread email is possibly a missed investment opportunity. That being said, a good way to stand out in the crowd is to show some personality in the email and be very thankful. Having a VC even read your email is worth a lot so make sure you portray your appreciation at both the beginning and the end of the email. Let them know that you understand that they are on a busy schedule and you don’t want to take up more than a couple minutes. Keep the email short and sweet and don’t forget to link to your video and any other digital pieces you have created, be it graphics, design concepts, 3d renderings etc..

Here is an excerpt from an email of mine that got a response from a Silicon Valley investor. This email got us in the door and we have been talking with this investor a while now. He has became a valuable asset and mentor to us all from this one email:

“Hi ——, My name is —- —-and I’m the co-founder of a site called ———. I know you’re super busy but if I could have a couple minutes of your time it would be very humbling and I would be forever grateful. I have a presentation video and would absolutely love it if you would give it a look see. If the presentation sparks your interest, I’m sending the executive summary as well. I’m a 24 year old entrepreneur and would love to hear any criticism you might have. I’m in it learn! Thanks again for even reading this, that means so much to me. Keep up the great work at ——- and ———–! I hope to hear from you soon.”

Venture Capitalists don’t have a lot of time to spend reading your email so keeping it short is very important. This particular VC specifically commented on how this email stood out from the others. It is also important to let them know that you are passionate and you want to learn from them. After all, they likely have a ton of experience so every sentence they write to you is important.

If you have any questions or would like me to expand on any of this just leave me a comment. Thanks for reading!