How to Raise Venture Capital | Entice Investors to Fund Your Startup Idea

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Of course, you want to own 50 percent of a company that makes $10 million a year.

You know what the difference is? Venture capital.

Today, I'm going to share with you how to raise venture capital.

See, over my lifespan, I've raised more than $20 million.

That may not seem like a lot.

It's because I've learned that you shouldn't raise more than you need.

Sure, some people raise hundreds of millions of dollars and then their company fails and the VCs take the whole thing.

The key is with venture capital is to not raise too much, just raise a little bit more than you need.

The reason I say a bit more is because things always go wrong.

You may think, oh, I just need this much money, and then things will go right, I can do this and that, but things always go wrong.

always add some padding.

Now here's the thing that most people don't tell you about venture capital.

When I first started off, I would go to VCs and pitch them like here's my idea; it's cool, it's the next best thing since sliced bread.

You have to invest. And you know what they said?

Oh, cool yeah, I'm interested, let us think about it, and we'll get back to you.

You know what they did? They never got back.

Why? Because I didn't build a relationship with them.

See, venture capital is all about who you know. It's not about going out there and just raising money from random people.

It's really about raising money from the right people. And what I learned about venture capital is when you build up a relationship and you get to know people, they're much more comfortable giving you money.

Why? Because the idea they invested in, and they see this, is probably not going to be the idea that your company ends up with.

Ideas change over time. What you first start with is rarely what you end up with. Things pivot and adapt. So people invest in those that they know.

Twitter started out as Odeo. Odeo was a podcast company, and it wasn't working.

Then they came up with Twitter.

Podcasting. Twitter. Do you see the resemblance? I don't. The investors didn't either. But they understand ideas change.

So, go to events like TechCrunch, they have conferences.

Who are at the TechCrunch events? Investors.

Mashable has meetups. Who are at those kinds of events? Investors.

Before you pitch them, you have to get to know them first.

That's the biggest mistake entrepreneurs make.

People go and try to raise money, which never really happens, from random people that they don't know. And it usually, in most cases, ends up in disaster.

You need to create a deck.

There's a lot of amazing decks. If you go to SlideShare, Dave Mcclure once released a deck that shows you how to raise venture capital.

I understand technology's changed, but the same pitch that worked back then works now.

If you follow these steps, you will be better off, and you should have an easier shot at raising money.

If you're not passionate, you're probably not going to get money.

If you don't have a co-founder, again, it's going to be hard to raise money.

VC's know you're not going to be able to do everything.

If you're a business person, find an engineer. If you're an engineer, find a marketer or a design or a product person.

You want to have at least two or more co-founders.

Now that you've got your co-founders, you have to pitch a big idea.

Ventur Capitalists are looking for the next Uber, Airbnb, eBay, Google, Microsoft; you get the point.

Create something that's huge.

They'd rather have you swing big and lose money than not take any risk at all.

They don't want you to create a company that does $20 million a year and sells for $50 million. It doesn't do much for them.

So go after a big idea, or no one's going to give you money.

After you raise the Venture Capital, you should always be fundraising.

Before your money runs out, raise more money.

You want to have a healthy cash reserve, or else you're going to have a much harder time raising money.

If you ever tried raising money or struggled out there, just leave a comment below, and I'll tell you what you did wrong.

I hope this video helps you. If you liked it, please subscribe to this channel, like the video, share it, let other people know about it.

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21 Responses to “How to Raise Venture Capital | Entice Investors to Fund Your Startup Idea”

  1. Technical Karlos☑️

    Mar 13. 2018

    Hey legend please contact me🙏🙏🙏

    Reply to this comment
  2. Karan Parwani

    Mar 13. 2018

    Hey Neil, how to approach the VC’s if the Idea is very common and existing but the industry and business model is profitable?

    Reply to this comment
  3. Big Star Technology

    Mar 13. 2018

    Hi Friends Support My Channel thinks

    Reply to this comment
  4. iRaza

    Mar 13. 2018

    Hey Neil. Great information 👍🏻

    Reply to this comment
  5. Arshad Ali

    Mar 13. 2018

    I need VC

    Reply to this comment
  6. ELECTRIC MOYÁ

    Mar 13. 2018

    Thank u

    Reply to this comment
  7. Rakesh Patil

    Mar 13. 2018

    While watching, felt like a Rap song 😂

    Reply to this comment
  8. Advert Lines

    Mar 13. 2018

    Good video.

    Reply to this comment
  9. Bhagyesh Patel

    Mar 13. 2018

    Nice one, Neil PATEL

    Reply to this comment
  10. Ceclia De Oliveira

    Mar 13. 2018

    I am starting a news/ media website for the Brazilian market which is huge. The idea is not innovative, it is going to be just another news website, but knowing that the market is supportive, and competition is not large, I still believe that it can be a good thing to do. I wish I could rise some money to start. DO you think that American investor cares investing to the audience in Brazil? yeah, that is a 3rd World country, but the company will be American, and I am inspired by BuzzFeed which has also been making a big buck over there. please let me know your thoughts. The page is almost done and in few week it is going t be launched.
    Best,
    C.

    Reply to this comment
  11. Haneet Singh

    Mar 13. 2018

    Sir, Google has changed the search Algorithms and my rankings goes down, Please make a video on it.

    Reply to this comment
    • Haneet Singh

      Mar 13. 2018

      Or tell me What to do now for increasing the traffic again?

      Reply to this comment
    • venkat SEO

      Mar 13. 2018

      Check your keywords performances. Change content in your website page with new proper keywords. Tell me ur domine once

      Reply to this comment
  12. Hassan Mushaid

    Mar 13. 2018

    Hey Neil would love to ask you a business question. A simple question on a decision.

    Reply to this comment
  13. Dhanur Sehgal

    Mar 13. 2018

    Hi Neil. How to build a team if every1 in your college wants a secure job?

    Reply to this comment
  14. ELITES TECH

    Mar 13. 2018

    What about raising money via ico.. what’s the bad effect on that?

    Reply to this comment
  15. MD Rafiqul Islam

    Mar 13. 2018

    Thanks Great Video.

    Reply to this comment
  16. MrSteeveAustin

    Mar 13. 2018

    I appreciate the sharing of knowledge but it s so hard to keep watching when I feel yelled at.

    Reply to this comment
  17. Akshay patil

    Mar 13. 2018

    *How to grow on YouTube*

    Reply to this comment

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