You are wrong about VCs, this is what they actually expect from you

These are some of the expectations that VCs have, and some of the misconceptions that you have about VCs

Expectations of VCs:

Good relationship between co-founders:

As I said in my previous newsletter, “a scrap idea can turn into a golden one if there is exceptional coordination between the co-founders”.

VCs want to see whether each co-founders have equal contributions to the company, whether everyone has similar decisions and goals about the company, and so on.

Passion meets market:

Are you passionate about your product? Does it really matter to you?

VCs tend to have these expectations because these are the factors that impact how successful your business will be. If you just make a business for the sake of ONLY money, most likely you are going to fail. You should enjoy scaling up your business.

This may sound unexpected, but VCs invest in you, not in your idea. It is you who is going to find the market gap, position your product, and win the game of business.

You are the mastermind of the business:

What do you think who should know the most about your business and the market you are going to enter? Short answer: It is you.

When you build a product or a business, you should be aware of most of the aspects of the business; it is understandable that some of the aspects are unexpected. But the highest in the room of your business is YOU.

Your business cannot be scaled:

You find the above statement as criticizing, right? Exactly, you may get a lot of criticism and feedback, this is to check you are an open-minded entrepreneur. At this point, VCs will get to know how your relationship with them will be in the future.

Never show yourself or your idea as superior; always welcome feedback and criticism. At the end of the day, it is for your own because they have been observing the market deeply, as their business lies in that. So if you get such things, take a step back, think, and take necessary actions rather than arguing.

Misconception about VCs:

VCs are too strict and rigid:

This is one of the biggest misconceptions I feel people have. VCs are too formal, and they want to have no humor in the meetings at all. Actually, it is quite different.

Everyone is a human in the room, and everyone wants to have a human-like conversation. Also, when you have a cheerful conversation, you are most likely to explain each and every aspect in clarity, which is what VCs want from you.

So, for next time, go with the mindset that you are talking to another human, not to a money machine.

VCs only have one intention: Money:

This is not that true. I agree that VC runs on capital, but money alone cannot run anything. A good relationship is a valuable asset to have. As stated, “Network is your networth.”

If VCs find you interesting but not your business execution techniques, they still want to have a good touch with you to get a potential deal in the near future.

You need VC, VC doesn’t need you:

If you think that VCs are just helping you out, but they can still have a good business without investing in you, you are totally wrong. The VC business runs on investing in businesses that show great growth.

So they are not just helping you but also looking for their next potential profit. So next time when you meet a VC, remember, YOU need VC and VC needs YOU.

Conclusion:

VC is a way to grow your business exponentially, but that doesn’t mean it is the only way. So make the best use of it, but don’t fear being rejected. It is just a one small chapter of your business

Keep buildin yourself everyday!