What Venture Capital Wants – Credibility Branding and Marketing

I apologize for my absence… I have been working a couple of big projects of late and attending some conferences. I recently attended the OCTANe VC conference in Orange County and thought you might appreciate some for the insights I garnered. I attended several panels for those looking for funding presenting to a panel of VCs looking for hot new investments.

Here were some of the more relevant and general take aways:

• Most companies fail not because they don’t have a great vision but because of lousy execution
• Passion and vision is not enough you must deliver
  • Deliver on the promise
  • Deliver an actual product (and on time)
  • Deliver to the market need
  • Deliver on a specific pain the market is feeling
• There should not be an obvious storm of competition in the market in the near term
  • Early to market wins
  • New ideas not a “me too” product
  • Even if it is the best new widget, if it is in a pool of many similar widgets it is to hard to differentiate (and get funding)
• Must have a demonstrable team
• Customers that have signed up to the concept

Many of the VCs mentioned that they don’t even call the references you provide—they know they will be positive. Instead they go to potential clients (not on your list) and ask their thoughts. So do your due diligence, and do the same; go outside of your normal references and ask potential customers what they think (especially those you know that the VC you are working with might have hooks into). Find out what they might say and address those objections in advance.

I am putting together a series of VC panels at an upcoming conference in Santa Clara. The Flash Memory Summit VC Sessions are occurring August 7^th. If you are in the flash memory space and are looking for funding you can sign up to participate. We are also offering and open invitation to VC looking for companies in that sector to join one of our panels. There are three early morning, afternoon and late afternoon. Just send me an email and your credentials and I will get you on board.

I will be back on Tuesday with a more regular posting schedule.