Dream Big
(continued)

3. Make a Big Difference
While even VCs sometimes follow the crowd, the businesses they invest in do not.  Differentiation is an important concept in many ways.  The most fundable companies will not only be different from their competition, but they will also be fundamentally different kinds of businesses. Starbucks was unlike any coffee company the United States had ever seen.  Amazon and eBay created fundamentally new business models. And FedEx radically changed package delivery.

Each of these businesses took familiar products – coffee, books, junk and mail – and made a big difference in how they were sold or delivered. And while consumer adoption was not always obvious, by unlocking new ways of looking at old businesses, each company captured the imagination of investors.

4. Start Small
Rome was not built in a day.  Neither are relationships with investors.  Start your search for an investor with a small number of prospects.  Learn everything you can about them.  And then approach each one individually, with caution and respect.

Remember, before they give you a big chunk of change, busy investors will afford you only a small amount of time.  Be courteous by preparing several bite-sized pieces of information about your company.

Start with a short “elevator pitch” – a 30 second sound bite about your market and the problem your company solves.  If that gets his or her attention, follow up with a small executive summary – one or two pages that describe your strategic approach and the key strengths of your company.

Finally, be prepared to follow up with a brief business plan – say 25 pages of details about your market, management and momentum – and a short PowerPoint presentation that encapsulates all the reasons why an investment in your company will make everybody rich.

The odds are long, but if you’re betting on venture capital to fund your company, the best bet is a big one.

David Worrell is the Director of Emerging Business Services at Triarch Capital Partners and a board member of the Business Innovation and Growth Council (BIG).