First, a venture capitalists (VCs) job at a very basic level is comb through tons of startups and pick the right ones to invest in. VCs look for and find these startups through a lot of different channels. Venture capitalists will typically be part of a firm and that firm will probably employ some analysts or scouts that will look for potential startups (think of a college football head coach sending his assistants to watch high school football games to find talent). VCs are generally very well-connected so they could also become aware of a startup opportunity through a referral or just from talking with one of their friends over dinner. They could also find a startup from reading the news or online blogs. A VC will not limit himself to certain channels from which he obtains information. If a VC comes across information, he will use it.
The truth is, though, that if you want your startup to be seen, it needs to stand out over the rest of the many many startups that a VC must comb through. So, the startup’s focus should be on standing out so that when a VC does find it, he will be interested. You can read more on this here – where we interviewed VC Jason Lemkin in our blog.
That is not to say that picking a channel to promote your startup to potential VCs is not important. It is important to use these channels to reach a VC. But, you would be better served finding an attorney to help you through the process of picking channels so you can focus your attention on making your startup stand out when it is found.
An attorney that has experience working with startups will have connections to these VCs and will be more likely to make a connection with them. An attorney would also be able to guide you through the things that VCs are looking for and what stands out to them. So talk to an attorney 😉
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